This from a poll of economist undertaken by Reuters on expectations for the US ahead of the GDP report coming Friday
U.S. economy will lose some of its strength in coming quarters
- "The upcoming GDP report (for Q2) is likely to be impressive, but we do not expect similar results in coming quarters. Some of the engines that fuelled activity in the trade sector are likely to be temporary," said Michael Moran, chief economist at Daiwa Capital Markets."We suspect that hindsight will show Q2 to be a spurt in growth rather than the beginning of a firmer trajectory."
Forecasts for April-June quarter are high based on "huge" tax cuts for businesses and individuals that were passed late last year
But, ahead, expected to be a weight on growth:
- import tariffs
- increasing concerns of further retaliation from China and other trading partners
- Federal Reserve interest rate hikes
For the Fed, economists forecast
- rates on hold July 31-Aug 1
- to hike by 25 basis points in September and once more before the end of this year
- two hikes next year
July 18-23 poll of over 100
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ps. For the your cut and paste pleasure into the comments:
- Economists, what a bunch of <insert comment here>
:-D
