What Nomura Expects From The US Economy
In a report published on Friday, analysts at Nomura listed seven things that they expect from the US economy. These were:
1. 3% growth over the next 4 quarters on "stronger consumer activity."
2. Beyond 2015, growth would be "closer to its potential rate of ~2.25%," driven by supply constraints and higher policy rate.
3. Wages to "gradually pick up as slack diminishes", but core inflation to be held down in 2015 by transitory factors.
4. Housing to be supported by "an improving job market and a gradual easing in lending standards."
5. The negative impact from lower crude prices on oil-drilling activity to hold back capex in 2015.
6. The first rate hike would be postponed to 3Q15 on account of "the lower trajectory of year-over-year headline inflation."
7. The key risks to remain as "tighter financial conditions, policy missteps, and further slowdown in global growth," Nomura's analysts said.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.