U.S. Outlook: What does 2018 have in store for us?
The U.S. and global economies are in a real sweet spot now.
Europe’s economic acceleration has been an important catalyst for stronger global growth and a bit of a surprise. In the U.S., another 2.1 million net new jobs were created in 2017. So what does 2018 have in store for us?
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Jan. 5.Key observations:
- We think 2018 will be another year of above-average U.S. GDP growth.
- U.S. consumers will keep growing their spending as real disposable income growth catches up to spending.
- We see the U.S. unemployment rate averaging 3.9% in 2018, hitting a low of 3.8% by the second quarter.
- U.S. growth will be sufficiently strong to keep the Fed on track to raise the fed funds rate three more times in 2018.