U.S. Outlook: Shifting prices create new winners
This week we’ve seen a dramatic illustration of the cross currents impacting the U.S. economy, and a good indicator of how the year is likely to shape up.
For a detailed look at this and other developments, see my full weekly analysis. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on Jan. 30.Key observations:
- Recent readings of consumer confidence suggest the consumer will have more staying power this year.
- The oil price shock is a net positive for the U.S. consumer and in turn a net positive for the U.S. economy.
- Unexpectedly low mortgage rates early this year are bolstering mortgage applications.
- A downside: Exporting manufacturers now need to deal with sluggish global growth and a far stronger U.S. dollar