The Real Economy: 2016 Economic Outlook

The economic outlook may be better than many think, with U.S. growth in 2016 likely remaining well above the long-term trend of 1.5 percent. The economy is expected to grow near 2.6 percent, with the household sector and residential investment being the two primary drivers. The recent Washington D.C. policymaker agreement, which resulted in a lifting of the debt ceiling, should add 0.2 percentage points to overall economic activity in 2016.

Household spending should grow by 3 percent, which will be fueled by job growth and wage gains. Meanwhile, residential housing is expected to accelerate to 1.375 million at an annualized pace, which would be a cyclical high.

Also in this issue, the industry watch shows retailers struggled in Q3, but some holiday season positives have emerged.