Thanks to David Bell for proving these highlights on Wachovia’s July Economic Report. (bold emphasis added by me)
Modest consumer spending, a pullback in commercial construction and lower growth in exports has resulted in a lower forecast for 2009.
Inflation remains at the top end of the Fed’s target range, due to higher priced imports, energy and food.
Sub-par economic growth suggests the Fed will keep interest rates on hold through the end of 2008.
Consumer spending is likely to remain weak after the initial stimulus from tax rebates.
Business fixed investment is also expected to be weak, given slower revenue expectations, tighter credit, and reduced profits.
Trade remains a positive in the economy, and is expected to add one-half to one percent growth for the second half of 2008.
The weak dollar and strong growth in several international markets are driving demand.
Short-term interest rates are likely to remain in range, while long-term rates are expected to increase once the turmoil in financial markets subsides.
Read the entire July Report from Wachovia.
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