U.S. State And Local Government Credit Conditions Forecast: The Economy Looks To Pick Up Steam In 2015 After A Slow Start

After letting up on the accelerator late in 2014 and early 2015, the U.S. economy looks poised to resume faster growth for the remainder of the year, according to Standard&Poor's economists. A harsh winter in the Midwest and Northeast contributed to some softening in the housing market, which acted as a drag on broader economic performance. Despite the winter's chilling effects, however, Standard&Poor's Ratings Services earlier forecast of 1.2 million housing starts remains intact, and we continue to see housing as a key to economic growth this year. This is similar to the pattern we saw in 2014: a slow first quarter followed by faster growth in the second and third quarters. This time, the economy

...After letting up on the accelerator late in 2014 and early 2015, the U.S. economy looks poised to resume faster growth for the remainder of the year, according to Standard & Poor's economists. A harsh winter in the Midwest and Northeast contributed to some softening in the housing market, which acted as a drag on broader economic performance. Despite the winter's chilling effects, however, Standard & Poor's Ratings Services earlier forecast of 1.2 million housing starts remains intact, and we continue to see housing as a key to economic growth this year. This is similar to the pattern we saw in 2014: a slow first quarter followed by faster growth in the second and third quarters. This time, the economy is benefitting from the state and local government sector itself, which has now avoided a net negative change in jobs for nine consecutive months, easily the longest stretch since before the recession. Through the next one to two years, our forecast suggests that credit conditions for state...

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