Economic Outlooks are like butts – everyone has got one…
but what is really happening in the economy? How should businesses plan for the coming year with conflicting economic reports? To address this issues the Schaumburg Business Association has organized the Straightforward Economic Outlook summit for a candid conversation on economic trends, models and challenges facing growth in 2019.
Featuring Scott Brave, Senior Policy Economist with the Federal Reserve Bank of Chicago, this forthright conversation promises to address the leading factors confronting economic growth. To get a preview of the discussion the Schaumburg Business Association connected with Brave on some of the initial noteworthy trends to consider:
1. Was 2018 a good year for the US Economy? Brave notes that 2018 is shaping up to be a year of strong economic group. Noting the tense of his response it is important to understand that the Federal Reserve is still collecting data from Fourth Quarter of 2018. This data collection has been delayed by the Government Shutdown. However, available data shows GDP Growth – total value of everything produce in the country – is up 3%. This is the highest percentage since 2005.
- SBA Observation – Based on our internal tracking 2018 was a strong economic year for Schaumburg with many of our businesses citing their strongest sales year (ever) or since before the Great Recession.
2. What is going on with the economy now? Why are there conflicting stories? The conflicting report begins with lack of data. The government shut down delayed the available data that is required to comprehend the economic outlook. There are signs of strength with the continued labor market increasing by 304,000 new hires in January. Reversely, December had weaker than projected retail sales number which is an indicator that growth through spending may be declining.
3. What is more concerning for the economy – inflation, tariffs, other(s)? The continued uncertainty with trade be in China-US relationship or closely to home the US, Canada, Mexico trade relationships. These have all placed a measure of caution into the planning and have slowed growth. Another factor to be mindful of is Brexit. The American economy is part of a global economy and the effects of Britain – European Union relationship will impact the US economy. The continued uncertainty of Brexit has slowed the world growth index will affect our economy. Trade – as the US economy is part of a global economy – is the most concerning issue facing growth in 2019.
4. What is the shape of the US Economy a year from now (2020)? To find out the specifics of the US economy and its global relationships as well as how the new Governor Pritziker administration will impact the businesses operating from Illinois please register for the SBA’s Straightforward Economic Outlook on Wednesday, February 27th to get the full, candid, insight.
Posted on Feb, 17
by Kyle Schulz filed under