The March report from the National Association for Business Economics has forecasted lower unemployment rate, more hiring, lower inflation, and more consumers spending in 2015, than its December forecast report.
It also predicts more investment by business in both equipment and intellectual property, and growth in stock prices.
John Silvia, the association’s president and the chief economist at Wells Fargo, said, “Healthier consumer spending, housing investment and government spending growth are expected to make outsized contributions to the projected acceleration in overall economic activity. Accordingly, recent labor market strength is expected to continue.”
The report predicts stronger dollar, increased activity in housing and continued low oil prices.
The report predicts the price for crude oil will be average $61 at the end of the year and $69 in December 2016.
Some of the negatives in the report are widening U.S trade deficit in 2015, scaled back forecast for 2015 corporate profit growth down 2% points to 4.7% from Decembers forecast and a dip in 2015 hourly compensation growth from Decembers prediction to 2.5%,
The panel consists of 50 professional forecasters and 88% of them forecasted that the Federal Reserve would increase interest rate in the second or third quarter of this year.
The report said, “The improved consumer spending outlook may be attributable to the psychological impact of lower gasoline prices, as well as improving employment and income growth.”