US economy to grow 3% this year – ING

The US economy is going from strength to strength with robust domestic figures set to be boosted by tax cuts and strengthening external demand, suggests the research team at ING.

Key Quotes

“We expect the economy to grow 3% this year, matching President Trump’s aspirations, with this week’s data set to confirm the positive story. Strong business activity means demand for workers remains firm, meaning ongoing healthy payrolls gains. Business surveys will also remain firm and inflation could tick a little higher with apparel a potential source of upside risk following recent surprise softness. This strong growth, rising inflation story leads us to forecast three Federal Reserve rate hikes this year – note that there are several Fed speakers scheduled for the week ahead.”

“It’s a busy week for Eurozone data, most of which should show a Goldilocks start to 2018. December’s inflation rate is likely to come in weak again, while the first confidence indicators of the year are likely to remain strong.”