Economy to Strengthen in Second Half of This Year

Economic activity is expected to accelerate in the second half of the year, according to Fannie Mae’s Economic & Strategic Research Group.

“We believe consumer spending will be the largest contributor to growth for the remainder of the year, particularly as consumers’ confidence, household net worth, and income growth prospects have continued to strengthen amid an improving jobs market,” says Doug Duncan, Fannie Mae’s chief economist. “On the downside, the drop in oil prices will likely continue to weigh on nonresidential investment in structures, and on balance we expect net exports to be a drag on growth this year, due in large part to the debt crisis in Greece and deteriorating economic conditions in China.”

Fannie Mae economists expect the housing market to remain part of that strength.

Source: Fannie Mae