Wednesday, July 26, 2017

And S&P says

NEW YORK (Reuters) - A sluggish forecast for U.S. economic growth as well as an increase in U.S. states' Medicaid and pension contribution costs is creating a budgetary squeeze in many state capitols, according to a research report issued by S&P Global Ratings on Monday.
Without a possible bump in growth from a federal infrastructure package, projected GDP growth for 2017 was lowered to 2.2 percent from 2.3 percent, the report said.
The report added that the U.S. mid-Atlantic region (New Jersey, New York and Pennsylvania) will have the slowest growing economy compared to other regions. Real GDP growth for the region is projected at 1.25 percent for 2017, the report said.
My take is they think potential growth is about  2%.  They are a bit optimistic, last year growth was 1.6%, this year Q1 was 1.4% RGDP growth, and we will likely be under 2% for the calendar year.  We are the COLA economy.

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