Dismissing the disappointing U.S. jobs report for December as a fluke that was caused by poor weather and seasonal-adjustment problems that will soon be revised away or prove to be an aberration, economists insist that the U.S. is poised for its best growth in years, reaching 3% for the first time in nearly a decade.
Economists say the U.S. will produce its fastest spurt of growth since the Great Recession because there is no big crisis in Washington brewing, U.S. households are better off financially and businesses are raking in the profits. Nor are there any major global threats to the economy on the horizon.
The forecast by the advisory panel of the American Bankers Association is no outlier, either. A rising number of economists predict the U.S. will meet or beat the 3% threshold. Economists predict companies will more than double their investment in 2013 in equipment, machines, plants and the like. If so, that would further solidify the foundation for the economy to grow.
“Now that the policy uncertainty has been reduced, we should see business investment pick up,” said George Mokrzan, director of economics at Huntington National Bank in Ohio.