Please Follow Us On:

Follow Delta Gypsum on LinkedIn

Delta Gypsum on LinkedIn

Sunday, July 17, 2011

Wells Fargo's Monthly Economic Outlook - July 2011

- Our outlook projects moderate GDP growth of 2.3 percent during 2011, reflecting continued contributions from consumer spending, business investment in equipment and software, export gains, and the eventual emergence of the commercial and residential real estate markets.

- Structural issues are preventing improvements in employment, as skill and location issues remain significant barriers to finding new employment.

. Productivity gains have also limited hiring, as industrial production is up 10 percent since the recovery began, and employment in manufacturing is less than one percent above recessionary lows.

- Rising core inflation reflects the upturn in rents and in owners’ equivalent rent, but we do not expect core PCE inflation to reach the Fed’s two percent target.

. With modest economic growth and a sub-two percent core deflator, we do not expect the Fed to alter the federal funds rate this year.

- Corporate profit growth will moderate during the year ahead, and reflect the globalization of U.S. firms pushing to reach the growing middle and upper income demographics in emerging markets such as Brazil, Indonesia, China, and India.

No comments:

Post a Comment