1994 economic outlook: Hopes become beliefs

Economic growth accelerated as 1993 came to a close, cementing consumer and business confidence in further expansion. Business economists and analysts at the Economic Outlook Symposium in December were increasingly upbeat. Their concensus forecast calls for steady growth to continue in 1994, along t...

Full description

Saved in:
Bibliographic Details
Published in:Chicago fed letter 1994-02 (78), p.1
Main Authors: Bergman, William, Strauss, William
Format: Article
Language:English
Subjects:
Automobile dealers
Automobile sales
Business forecasts
Corporate profits
Economic conditions
Economic growth
Economic impact
Increases
Interest rates
Production capacity
Trends
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Economic growth accelerated as 1993 came to a close, cementing consumer and business confidence in further expansion. Business economists and analysts at the Economic Outlook Symposium in December were increasingly upbeat. Their concensus forecast calls for steady growth to continue in 1994, along the same lines as in 1993, with little or no increase in inflation and only a modest increase in interest rates. This year's forecast also calls for above-average gains in areas in which Midwest productive capacity is concentrated. Motor vehicle sales and production are expected to improve further in 1994. Consumers are more willing to utilize new credit, a trend reflecting improved consumer confidence. Declining risk-free interest rates played an important part in supporting the willingness to engage in new credit sales. Corporate profits improved relatively slowing over the past 2 years, but there should be greater improvement in profitability as economic expansion matures.
ISSN:0895-0164
2163-3592