Fannie: Economy to Strengthen in Second Half
Economic activity is expected to accelerate in the second half of the year, according to Fannie Mae's Economic & Strategic Research Group
"We believe customer spending will be the biggest benefactor to development for the rest of the year, especially as shoppers' confidence, household net worth, and income growth prospects have continued to strengthen amid an improving jobs market," says Doug Duncan, Fannie Mae's chief economist "On the drawback, the drop in oil costs will continue to weigh on nonresidential investment in structures, and on balance we expect net exports to be a drag on growth this year, due in large part to the debt crisis in Greece and deteriorating economic conditions in China."
Fannie Mae business analysts keep on anticipating that the housing market sector should remain a piece of that monetary quality.
"We hope to see solid deals, incline inventories, and rising certainty through whatever remains of the year, which ought to bolster expanded home building movement and give an added help to monetary development," Duncan says. "In spite of the fact that an absence of talented work may hurt development movement, our conjecture calls for lodging begins to normal 1.12 million units. We expect existing and new home deals to move by more or less 5 and 25 percent, separately, and aggregate home loan starts to rise more or less 24 percent to $1.46 trillion, with a renegotiate offer of 47 percent."