Posted by Heidi Schwartz
Improvement in both consumer confidence and the labor market are expected to boost economic growth in the second half of the year, according to Fannie Mae’s Economic & Strategic Research Group. The latest jobs report showed steady year-to-date job creation and measures of consumer confidence are at or near recovery highs.
“Consumer attitudes are improving amid a strengthening employment sector, and we should begin to see a moderate pickup in consumer spending. Overall, we expect economic growth to come in at 2% in 2013, but further momentum later this year should help carry growth in 2014 to an above-par pace of 2.6%, the strongest since 2005,” said Fannie Mae Chief Economist Doug Duncan.
For an audio synopsis of the July 2013 Economic Outlook, listen to the podcast on Economic & Strategic Research. To read the full July 2013 Economic Outlook, click here.