ACT Research Predicts Lukewarm Economy

With a context of what the future holds for the commercial vehicle industry, economist Sam Kahan said the U.S. can expect moderate economic growth in 2012.

Speaking to a gathering of trailer manufacturers, truck manufacturers, suppliers, and members of the financial community, ACT Research’s chief economist expects the economy to post moderate growth this year. He also said that:

• Unemployment will remain historically high this year.

• Inflation will continue to be subdued, but he is concerned about the effect of rising energy prices. Barring a flare-up with Iran, supplies are expected to be plentiful. Given the level of supply, oil prices should be lower than what they currently are.

• Employment is growing.

• Financing is becoming easier to obtain.

• Residential housing is beginning to improve, but it will remain slow due to remaining high levels of existing homes on the market.

• State and local governments continue to face tight budgets, and stimulus money is ebbing.

• Exports are up, fueled by favorable exchange rates, but the economies of emerging markets are slowing, and the Eurozone is weak.

Related content: Trailer shipments forecast to grow 19% in 2012

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