U.S. Outlook: What you need to know

Posted By Scott Anderson In Economic Outlook | No Comments

Where did all the shoppers go? Coming off a heady fourth quarter when consumers couldn’t find an item they didn’t want to purchase, the consumer appeared to be knocked‐out in the first quarter.
Chart that shows consumer spending trends. [1]Real consumer spending grew at a sizzling 4.0% annualized rate, the best quarterly performance in three years, according the last week’s third revision of Q4 GDP.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on March 30.

Key observations:
  • We are raising our forecast for a convincing rebound in real consumer spending in the second quarter to a solid 2.7% annualized rate, with GDP growth accelerating to an above trend 2.6% pace.
  • Get ready for another strong jobs report for March. We expect a net gain of another 245K nonfarm jobs and an unemployment rate that drops to 4.0%.
  • We expect stronger average hourly earnings growth of 0.3%, up from a 0.1% gain last month.

Read my full report. [2]

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URL to article: https://changematters.bankofthewest.com/2018/03/30/u-s-outlook-what-you-need-to-know/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2018/03/Consumer-Spending-Chart_3_30_18.png

[2] Read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2018/03/BankoftheWest_USOutlook_03_30_18.pdf

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