The Nation’s Economic Outlook

THE NATION’S ECONOMIC OUTLOOK By Jack Malehorn ECONOMIC DATA - HANDLE WITH CARE Similar to the tragedy which occurred to our nation on 9/11, the economy will recover and progress forward in time. Still, for the next several quarters, economic data must be ‘Handled with Care.’ The collapse of much of the Gulf Coast economy will undoubtedly cause a reduction in most economic barometers such as GDP, DPI, PCE to mention just a few. However, this flattening of the economy will result in stronger growth delayed to the next several quarters as the recovery and rebuilding efforts kick in. As such, positive economic growth should commence throughout all of next year. Losses hitting the economy today will not go away but may be postponed temporarily. Over the horizon, fuel price/heating oil concerns and threats of terrorism will be sensitive issues but the U.S. economy is resilient enough to absorb them. HOUSEHOLDS All economic factors relating to household spending decisions will be impacted. Nonetheless, the average American consumer armed with ample available credit will be an economic force in the foreseeable future. Personal Consumption Expenditures will take ...