Professional Service Agreement

Economic Forecasts

August 09, 2016

A hoped-for bounce in growth didn't materialize because of lower investment by businesses. Robust consumer spending helped offset that and push growth to 1.2%. But a number of risks – including a stronger dollar and the impacts of a volatile presidential race – still loom, and could further dampen investment or make shoppers more cautious.

For the full year, expect growth of only about 1.4%. It is projected that growth in 2017 will be 2.0%. Inflation is projected to be 1.8% at the end of 2016, and 2.4% at the end of 2017. Unemployment is currently at 4.5%, and is projected to be 4.9% at the end of 2017. Business spending is flat on slowing global growth, high dollar, and soft energy spending.