North American economic forecast growth at slower rate

Jan. 1, 2007
HE said GDP will grow 3.3% in 2006 and 2.6% in 2007. He forecast the following segments to grow in 2007, but at a slower rate than in 2006: consumer spending

HE said GDP will grow 3.3% in 2006 and 2.6% in 2007. He forecast the following segments to grow in 2007, but at a slower rate than in 2006: consumer spending 2.4%, down from 3%; capital spending 6.9%, down from 7.8%; industrial production 3%, down from 5%; and housing starts 1.67 million, down from 1.84 million. He forecasts government spending to grow 2.2%, up from 1.9 in 2006.

“The economy started strong in 2006, running into housing headwinds,” he said. “The fear is both of the inflation threat and the possible overreaction by the Federal Reserve, European Central Bank, and others. Volatility is up, commodity prices in retreat. The indicators are mixed, rather than uniformly strong. As central banks raise rates, the likelihood of a slowdown persisting into 2007 increases.”

Meil also spoke about U.S. retail sales of Class 8 trucks/tractors, predicting sales of 360,000 units for 2006 and 205,000 units for 2007. However, he noted that there is still plenty of time for the ongoing pre-buy to affect the current trend.

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!