WASHINGTON, April 20, 2015 /PRNewswire/ -- Economic activity
was suppressed in the first-quarter due largely to the West Coast
port disruptions and difficult weather patterns across the
Northeast, but the economy is expected to gain momentum throughout
the spring and reach previously anticipated levels by year-end,
according to Fannie Mae's (OTC Bulletin Board: FNMA) Economic
& Strategic Research (ESR) Group. While they have adjusted
downward first-quarter growth from the prior forecast, the ESR
Group's full-year 2015 growth projection remains unchanged at 2.8
percent. Risks remain tilted to the downside, however, as consumer
spending may be weaker than anticipated and the financial markets
are likely to experience some volatility leading up to the Fed's
first expected rate hike in the coming months.
"We have downsized our first-quarter economic growth
expectations in light of several transitory factors that weighed on
consumption, but our outlook is largely the same as what we
forecasted in March," said Fannie Mae Chief Economist Doug Duncan. "Although some momentum was lost in
the first quarter as consumers remained cautious in their spending,
perhaps putting an emphasis on repairing their personal balance
sheets and replenishing savings, we expect that consumer spending
will catch up during the second quarter and continue in subsequent
months, supporting our forecast of 2.8 percent growth for the year.
We believe this momentum will carry over into the housing market,
as well, particularly if strong consumer income growth
continues."
Visit the Economic & Strategic Research site at
www.fanniemae.com to read the full April
2015 Economic Outlook, including the Economic Developments
Commentary, Economic Forecast, Housing Forecast, and Multifamily
Market Commentary. To receive e-mail updates with other housing
market research from Fannie Mae's Economic & Strategic Research
Group, please click here.
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.
Fannie Mae enables people to buy, refinance, or rent
homes.
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SOURCE Fannie Mae