Moderate Growth in 4Q

Moderate Growth in 4Q

Moderate Growth in 4Q

January 21, 2020

Defense spending, business investment, residential construction and confident consumers will likely offset weakness in trade and auto sales to produce an annualized GDP growth rate between 2.1 percent and 2.5 percent for the final quarter of 2019, according to economic analysts at Illinois-based First Trust. While the figures are lower than the investment bank’s initial forecasts, they are considerably higher than early estimates by the Federal Reserve Bank of Atlanta. “Either way, what’s most important is the trend, and we see healthy economic growth coming in 2020. Monetary policy is far from tight, companies are still adapting to a world where corporate profits earned in the US face lower tax rates, the regulatory environment has become more favorable, home building is poised to add to GDP, and consumer purchasing power (already strong) is growing.”

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