What Will 2015 Bring to the U.S. Economy?

Dr. Onvural is an Associate Professor of Economics and Finance at Pfeiffer University’s School of Business, teaching online and face-to-face Business Economics, Health Economics, Health Care Financial Management, and Managerial Finance courses to the MBA and MHA students. The U.S. economy in 2015 is expected to continue on its current path of growth well into the first quarter of 2016. Consensus expects the country’s GDP growth rate to remain in the neighborhood of 2.25 percent. Recent declines in the price of crude (now, below US$45/barrel), as well as the unemployment rate (now, at 5.5 percent) together with slight improvements in disposable income have raised both consumer confidence and spending. At the same time, GDP growth has remained tepid due to cautious consumers who have been squeezed by a minimal rise in wage rates. Further, the surging dollar, now at a six-year high against the euro ($1.06), has made U.S. exports more expensive to struggling European economies. CONSUMERS The continuous improvements in employment rate and increases in consumers’ personal disposable income have positively affected consumption and, subsequently, growth in the economy. The continued ...