COLUMBUS, Ind. — ACT Research predicted that the U.S. economy will continue to accelerate in 2015 despite a decline in retail sales and manufacturing activity in recent months.
“Our outlook on the U.S. economy is very positive," ACT Chief Economist Sam Kahan said here March 24 during ACT’s latest seminar. “The fundamentals of the economy for freight and transportation remain positive."
However, retail sales declined in December, January and February after posting 4.3% growth in the third quarter and a 1.8% gain in the fourth quarter.
Manufacturing also dipped during those months after 4.9% and 4.1% increases in the third and fourth quarters, respectively.
Kahan attributed those downturns to bad weather.
“I think it’s all weather-related, and as we get into spring and summer, we should see a fairly strong rebound,” he said.
Sources of optimism include firming labor markets, the plunge in energy prices, an increase in disposable income and high consumer confidence, Kahan said.
Potential headwinds include weaker economies across the globe, geopolitical concerns, a slowdown in industrial production, potentially “lackluster” construction activity and a Congress that “still seems to be in a dysfunctional mode,” preventing federal investment in infrastructure, he said.
