Economist sees accelerating U.S. economy

COLUMBUS, Ind. (March 25, 2015) — The U.S. economy will continue to accelerate in 2015 despite a decline in retail sales and manufacturing activity in recent months.

That's the prediction of an economist with Columbus-based Americas Commercial Transportation Research Co. L.L.C. (ACT), a publisher of commercial vehicle industry data, market analysis and forecasting services for the North American market.

“Our outlook on the U.S. economy is very positive," ACT Chief Economist Sam Kahan said in Columbus March 24 during an ACT seminar.

“The fundamentals of the economy for freight and transportation remain positive,” Mr. Kahan continued.

However, retail sales declined in December, January and February after posting 4.3 percent growth in the third quarter and a 1.8 percent gain in the fourth quarter, according to ACT.

Manufacturing also dipped during those months after 4.9-percent and 4.1-percent increases in the third and fourth quarters, respectively.

Mr. 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, Mr. 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.