According to Jonathan Basile, economist at Credit Suisse, growth is likely to pick up in the second quarter. His firm has a 3.2-percent GDP forecast for the U.S. in the second quarter. JP Morgan Chase forecasts a 2.8- ercent GDP growth.
Overall, Tim Rogers, chief economist at Briefing.com, expects total 2007 GDP growth in the U.S. between 2.5 and 3.0 percent.
Economists say while the housing sector has, at best, stabilized, demand has picked up in the manufacturing sector, and there are signs that the inventory correction is ending.
Basile’s overall GDP forecast for 2007 is 2.1 percent.
“We lost momentum through 2006 and started 2007 on a weak note,” he says. “But, things will improve.”
Euro/dollar growth differentials appear to be tilting in favor of the U.S.
“While the eurozone is seen as peaking now and declining in 2008, the U.S. economy is seen as bottoming in the first quarter and improving,” Powell says.
“Growth differentials are widening with the U.S. doing better,” adds Chase’s Glassman. “Views were very negative on the U.S., but the U.S. is getting a second wind.”
That shift in perceptions helped drive the U.S. dollar higher from late April to mid-June.
Subscribe to:
Post Comments (Atom)
Post a Comment