Business equipment sales drive better economic forecast
WASHINGTON, DC – The 2017 economic growth forecast increased one-tenth from the prior forecast to 2.5 percent. The contributing factors were the government’s upgraded third quarter GDP growth estimate and an expected solid fourth quarter finish, according to the Fannie Mae Economic & Strategic Research Group’s December 2017 Economic and Housing Outlook.
Consumer demand and investment spending growth are expected to pick up in the current quarter, although inventory investment is slowing. Business equipment investment grew at its fastest pace in three years during the third quarter, hastened in part by a flurry of deregulation activity, a declining dollar, and strengthening economic growth abroad.
“The economy appears poised to finish 2017 on a cheerful note as fundamentals increasingly align with strong business and consumer sentiment. Domestic demand is building momentum, job growth is solid and broad-based, and consumer spending looks likely to strengthen,” said Fannie Mae Chief Economist Doug Duncan.