A.M. BestTV: Immediate Economic Outlook Bright, But U.S. Debt Casts Shadow, Says A.M. Best Senior Economist

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode, Meg Mulry, senior economist - economic and industry research, A.M. Best, said strong growth and improved labor markets appear set to continue, but higher levels of U.S. debt could create longer-term economic issues. Click on http://www.ambest.com/v.asp?v=rpeconomic218 to view the entire program.

In 2017, the U.S. economy continued to expand, with that growth accelerating in the second half of that year.

“2017 shaped up to be a very good year,” said Mulry. “High consumer confidence, low unemployment, consumption growth and expansion throughout all metrics of the economy … A.M. Best expects all of this will continue in 2018. Also, A.M. Best anticipates increase business investments as a result of the tax reform law, as well as a strong global economy.”

However, Mulry does have concerns about hourly wage growth, labor market participation, household debt and the raising of rates by the Federal Reserve (Fed).

Mulry said, “Hourly wage growth and participation in the labor market have not increased to a better level, although, in January wage growth did increased to 2.9% from 2.5% in December.” She continued that household debt has expanded across all levels, and if the Fed continues to raise rates, “it will make the cost of servicing these debts more expensive.”

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^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.