The U.S. economy is expected to maintain solid growth throughout 2015, with real GDP forecast to grow at a pace of 3.1%, says a report from BMO Economics.
The prediction is a result of a variety of factors: lower oil prices, strong consumer spending, significant job growth, solid housing market momentum and significant business investment.
“Consumer spending and housing look to lead economic growth this year, more than offsetting weakening net exports and ebbing business investment flows, particularly in the oil sector,” said Michael Gregory, head of U.S. Economics, BMO Capital Markets. “While wage trends continue to disappoint, for consumers and the economy as a whole, this is being more than offset by the sheer number of jobs being created.”
In the Midwest, Illinois is positioned to accelerate growth for the second straight year, with low oil prices, increased consumer spending and business investment driving the state forward.
The auto sector is driving solid growth in Indiana, while Wisconsin should also benefit from lower oil prices and firming factory activity. Minnesota’s diverse economy continues to perform well. While growing conditions have been volatile in recent years, Kansas and Missouri are seeing improved output; however they are also experiencing slightly below-average real GDP growth.