According to a new report from BMO Blue Book, while the U.S. economy is remaining resilient, amid aggressive monetary tightening, it is predicted to slow in early 2024.
The BMO Blue Book combines the expertise of BMO Economics with insights from BMO’s Commercial Bank leaders on the state of the U.S. economy as a whole and on 11 local regions – Northern California, Southern California, Pacific Northwest (Washington and Oregon), Arizona, Colorado, Texas, Minnesota, Wisconsin, Illinois, Indiana, and Florida.
“The U.S. economy remains resilient, with real GDP appearing to have picked up to a 4.5% annualized rate in Q3 from 2.1% in Q2. That is not to be expected following the most aggressive course of monetary tightening in four decades,” said Michael Gregory, Deputy Chief Economist, BMO. “However, the economy looks to decelerate next year. High borrowing costs and rising home prices have sent affordability to the worst levels in nearly 40 years.”
“In many ways it’s a tale of two economies, with slowing consumer spending negatively impacting certain areas of the economy such as retail and consumer finance, while other pockets like manufacturing and distribution are still positive,” said Ray Whitacre, Head, BMO Commercial Bank, U.S. “BMO has helped its commercial clients navigate all economic cycles for over 200 years and we are uniquely positioned to continue to help our clients in these challenging times.”
The BMO Blue Book covers key regions including:
Northern California:
-
Northern California’s economy is cooling off after a respectable second quarter performance. Challenging housing affordability and high costs of living continue to be an impediment for stronger economic activity.
-
Companies are focusing on their capital expenditure and finding new ways to remain lean in the current economic climate.
Southern California:
-
Southern California’s economy is still on track for a soft-landing in 2024. Leisure and hospitality, education and health…
Read the full article here
