Most people’s projections for the immediate future on our economic growth are looking very positive. Speculations certainly include the rapid growth of consumer spending, excellent housing starts growth, and the improvement of business capital spending. Manufacturing production has also been dramatically on the increase over the past twelve months, for a total gain of five percent.
Some people speculate that not all is to be peaches and
cream, however. Non-residential construction isn’t expected to see much growth,
if any at all. Another legitimate concern is that if the fed tightens down too
soon, projections put a decline around 2017 or 2018. If the Fed does not
trigger another recession, projections are quite positive, only getting better
with more time.
The stock market is expected to do well in these conditions.
This is because the positive effects of growth offset the negative effects of
interest rates rising. The rate hike is anticipated to be around one percentage
point per year.
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