Executive Summary
A slowdown in the rate of inventory de-stocking boosted 4Q2009 U.S. GDP growth to a six-year high of 5.7 percent. Export and/or domestic demand will need to be more tangible if growth is to be maintained or expanded; but eliciting greater demand for U.S.-made goods could prove challenging given the dollar’s recent strength because of concerns over Europe’s sovereign debt problems, and expectations of continued high domestic unemployment. Most December indicators of housing market activity shriveled with the expiration of the initial federal home-buyer tax credit at the end of November. However, the upward trend in permits suggests the worst of the residential construction bloodletting may have already occurred. Rising interest rates will test the mettle, and ultimately dampen the magnitude, of the housing rebound over the next 24 months. When combined with a more burdensome tax structure in 2011, rising interest rates will return the U.S. economy to recession in 2Q2011.
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What is Macro Pulse?
Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
Macro Pulse's timely yet in-depth coverage.
Macro Pulse's timely yet in-depth coverage.
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