What does the Cubs World Series championship win have to do with the global economy?
According to Luke Chandler, Deputy Chief Economist for Deere & Company, it speaks to cautious optimism of 2017 and the sentiment of 2016 as the year of low-probability events, from Brexit and the Trump presidency, to the Cubs taking the World Series title.
Chandler said that while growth in 2016 was disappointing, the International Monetary Fund is forecasting stronger growth for 2017-18. Consumer confidence is at a 15 year high, US housing starts are forecasted to reach a 9 year high, and energy sector profitability is on the rise. U.S. net farm income is expected to stabilize in 2017.
Thanks also to our panelists for sharing their insight on what expect in 2017:
- Housing starts are at a high and strong land sales will have a positive ripple effect on the economy – John Ruhl, NAI Ruhl Commercial Company
- High activity in big purchase items, and a potential interest rate increase in the horizon which will mean higher margins – Trish Townsend, Quad City Bank & Trust
- Uncertainty regarding tax reform, but a middle market survey conducted in Q4 of 2016 showed strong results – Ryan Weber, RSM – US LLP
- Strong vehicle sales and overall optimism about the local economy – Dale Zude, Courtesy Car City, Kimberly Car City and Courtesy Ford
- Uncertainty in insurance, with auto insurance costs on the rise, and advice to plan for the worst and expect the best in health insurance – Roger Schemmel, Molyneaux Insurance
- Our moderator, Jim Russell, brought levity in advice: “Borrow money now and build things”
You can also view Luke’s entire presentation here.
The Economic Forecast continues to be a strong member benefit, and is one of the ways in which we are helping member businesses build relationships and access valuable information. Thanks to our sponsors for helping us provide this resource to the business community: Deere & Company, NAI Ruhl Commercial Company, Quad City Bank & Trust, RSM – US LLP, Courtesy Car City, Kimberly Car City and Courtesy Ford, Molyneaux Insurance and Russell.