Blog

27Nov2018

The U.S. Economy Strongly Humming Along

By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC

The unemployment rate continues to decline with a recent report showing the jobless level at 3.7 percent, the lowest since December 1969. GDP growth this year has averaged 3.3 percent for the first three quarters and is expected to come in around 3 percent for the final quarter of 2018.

A preliminary reading on consumer sentiment for November came in slightly above expectations with the index hitting 98.3 – slightly below October’s 98.6 percent. The stability of consumer sentiment at high levels could be masking underlying shifts. Income expectations may have improved, but consumers are also anticipating rising inflation and higher interest rates.

Steve Odlan, president and CEO of The Conference Board, told CNBC’s “Power Lunch” that his group’s forecast for 2018 GDP is about 3.1 percent, while 2019’s is 3.2 percent. The organization, a global, independent business membership and research association, conducts a number of CEO and confidence studies.

While some sectors may be seeing a bit of an economic slowdown, Odlan points out it is a “mixed bag” for industries ten years into an economic recovery, and the majority are doing well.

Mad Money host, Jim Cramer, is warning investors about a manmade slowdown in the U.S. economy fueled by the Federal Reserve’s interest rate hikes and tariffs. Even though numbers are strong, CEOs are worried about growth slowing so drastically that it could actually hurt the economy. Cramer claims his corporate sources confided in him that the Fed “seemed to be out of touch … with what was happening” on Wall Street.

Chief executives in the U.S. say overall numbers look very strong and all indicators from the consumer confidence index give the expectation for the next six months to be good economically.

  • 27 Nov, 2018
  • Summit Consumer Receivables Acquisitions, LLC

Share This Story

Categories

Comments