- US: IIP (Q4)
- Zambia: BOP (Q4); Israel: Credit Card Purchases (Feb); UAE: CPI (Feb); Saudi Arabia: GDP (Q4-Prelim)
- Hungary: Employment (Feb); Bulgaria: Business Survey (Mar); Kazakhstan: Consolidated Budget (Feb)
- Sweden: Consumer Confidence, Business Tendency Survey, Public Finance (Mar); Iceland: PPI (Feb)
- Spain: Mortgage Market (Jan), Order Book Forecast (Mar)
- Italy: ISTAT Business & Consumer Survey (Mar)
- more updates...
Economy in Brief
U.S. Energy Product Prices Remain Under Pressure
Regular gasoline prices held steady at $2.32 per gallon last week (12.1% y/y) for the third straight week...
German Federal Debt Levels Fall
German debt level fell outright in Q4 2016 as the ratio of federal debt-to-GDP also fell...
NABE 2018 Forecast: Modest Improvement in Economic Growth & Higher Inflation
The NABE expects 2.5% real U.S. economic growth in 2018 compared to 2.3% forecast for 2017...
Texas Factory Sector Activity Remains Strong
The Dallas Fed indicated in its Texas Manufacturing Outlook Survey that the General Business Activity Index eased during March...
EMU Money and Credit Growth Are Less Than Impressive Than Euro-PMIs
EMU nominal money supply growth is slightly higher over three months, but credit growth in the EMU is slower...
Durable Goods Orders Strengthened by Another Jump in Aircraft
New orders for durable goods rose 1.7% (5.0% y/y) during February...
by Tom Moeller March 28, 2016
The National Association for Business Economics projects 2.4% real economic growth in the U.S. next year following a 2.2% estimate for 2016, which was revised down from 2.6% projected in December. The gains follow a 2.4% rise in both 2015 and 2014. Quarterly GDP growth is expected to range between 2.5% and 2.5%. Growth in personal consumption expenditures is expected to moderate to 2.6% next year following 2.8% in 2016 and 3.1% in 2015. Nevertheless, these remain the strongest yearly gains since 2006. Growth expectations for business investment in equipment in 2016 eased to 4.0% from 4.9% projected earlier. Expected growth in spending on nonresidential structures held steady at 4.0%, following last year's moderate decline. Real net exports are expected to deteriorate next year, producing another drag on U.S. GDP growth as import growth of 4.2% outpaces the 3.1% gain in exports. The rate of inventory investment is expected to ease to the slowest since 2012. Growth of 7.0% next year in residential investment compares to 8.3% in 2016. It thus should continue to be the economy's strongest sector.
Housing starts are expected to average 1.37 million after a slightly lowered 2016 estimate of 1.24 million. Expected light vehicle sales of 17.4 million units next year followed a raised estimate of 17.6 million this year. Average monthly gains in payroll employment are expected to ease to 179,000 from 195,000 in 2016, which was lessened slightly. Expectations for the unemployment rate of 4.6% next year compared to a reduced estimate of 4.7% in 2016. Consumer price inflation is expected to average 2.2% next year, the quickest rate of increase since 2011. The core PCE price index should rise 1.9% next year, also the strongest gain since 2011.
The forecasted 3.04% interest rate on 10-year Treasury notes at the end of next year follows 2.50% at the end of this year. The Fed is expected to continue raising the federal funds rate to 1.88% by the end of next year. Corporate profits next year should rise 3.7% following a reduced 2.0% forecast for this year. The Federal government budget deficit is expected to be $526 billion in 2017, roughly one-third its $1.4 trillion peak in 2009.
The figures from the latest NABE report can be found in Haver's SURVEYS database.
|National Association For Business Economics||2017||2016||2015||2014|
|Real GDP (% Chg. SAAR)||2.4||2.2||2.4||2.4|
|Personal Consumption Expenditures||2.6||2.8||3.1||2.7|
|Change in Real Business Inventories (Bil. $)||55.4||58.0||97.5||68.0|
|Real Net Exports (Bil. $)||-628.5||-581.7||-543.4||-442.5|
|Housing Starts (Mil. Units)||1.37||1.24||1.11||1.00|
|Light Vehicle Sales (Mil. Units)||17.4||17.6||17.4||16.4|
|Payroll Employment Average Monthly Change (000s)||179||195||229||251|
|Unemployment Rate (%)||4.6||4.7||5.3||6.2|
|Consumer Price Index (Y/Y %)||2.2||1.4||0.1||1.6|
|Fed Funds Rate (%, Year-End)||1.88||0.88||0.38||0.13|
|10-Year Treasury Note (%, Year-End)||3.04||2.50||2.27||2.17|