The Nation’s Economic Outlook

THE NATION’S ECONOMIC OUTLOOK By Jack Malehorn THE CONSENSUS OUTLOOK REMAINS POSITIVE The Consensus Outlook remains positive despite the plethora of negative press reports. In light of the ubiquitous chagrin regarding oil prices, pervasive threats of terrorism, and natural disasters, the Consensus Outlook remains on track reporting positive growth through well into next year (2007). In fact, resilient would be the best characterization for the nation’s economy. Undoubtedly, the world’s largest economy has enough momentum to weather any storm on the horizon. Moreover, the subdued growth that is expected should bode well with those who are concerned chiefly with surfacing inflationary pressures. The bottom line is that this economy is well entrenched and will continue on a steady—albeit subdued—path in the foreseeable future. HOUSEHOLDS The average consumer in the United States delights in continued spending. Even with rising gas prices and interest on accumulated debt, U.S. households are expected to continue to spend, although at a slower rate than witnessed in previous years. Personal disposable income and personal consumer expenditures are projected to grow at roughly ...