WASHINGTON, Feb. 26, 2014 /PRNewswire/ -- Economic activity
should slow in the first quarter of the year and faces some
downside risks due in part to the recent cold weather in major
parts of the U.S., but a modest pickup in growth remains in the
forecast for all of 2014, according to Fannie Mae's (OTC Bulletin
Board: FNMA) Economic & Strategic Research Group. Following a
surge in activity during the second half of 2013, the group expects
weaker first quarter growth due to various factors, including a
substantial correction to the unsustainable buildup of inventories
reported during the second half of last year, which exceeded sales
levels. In addition, the cold snap may contribute to a dip in
construction activity and consumer shopping in the first quarter.
However, amid strengthening private sector activity throughout the
year, growth is expected to increase from 2.7 percent in 2013 to
2.9 percent in 2014.
"Our February forecast continues our theme for the year,
'Private Forces Move to the Fore,' despite the fact that first
quarter growth is likely to be slower than the last two quarters of
2013," said Fannie Mae Chief Economist Doug
Duncan. "Some may attribute the slower pace of growth to the
cold weather, which was combined with slower employment growth
going into 2014 and other cross currents that have appeared in
global economic and financial market conditions. However, we expect
the impact from special factors currently weighing on activity to
reverse and believe we will see sufficient pickup later in the year
to meet our forecast expectation of 2.9 percent real growth in
2014."
For an audio synopsis of the February
2014 Economic Outlook, listen to the podcast on the Economic
& Strategic Research site at www.fanniemae.com. Visit the site
to read the full February 2014
Economic Outlook, including the Economic Developments Commentary,
Economic Forecast, Housing Forecast, and Multifamily Market
Commentary.
Opinions, analyses, estimates, forecasts, and other views of
Fannie Mae's Economic & Strategic Research (ESR) Group included
in these materials should not be construed as indicating Fannie
Mae's business prospects or expected results, are based on a number
of assumptions, and are subject to change without notice. How this
information affects Fannie Mae will depend on many factors.
Although the ESR Group bases its opinions, analyses, estimates,
forecasts, and other views on information it considers reliable, it
does not guarantee that the information provided in these materials
is accurate, current, or suitable for any particular purpose.
Changes in the assumptions or the information underlying these
views could produce materially different results. The analyses,
opinions, estimates, forecasts, and other views published by the
ESR Group represent the views of that group as of the date
indicated and do not necessarily represent the views of Fannie Mae
or its management.
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SOURCE Fannie Mae