Thursday, August 10, 2017

The August 2017 Wall Street Journal Economic Forecast Survey

The August 2017 Wall Street Journal Economic Forecast Survey was published on August 10, 2017.  The headline is “WSJ Survey:  Most Economists Expect Next Fed Rate Increase in December.”

I found numerous items to be notable – although I don’t necessarily agree with them – both within the article and in the “Economist Q&A” section.

An excerpt:
Economists surveyed by The Wall Street Journal this month see the Federal Reserve raising interest rates once more in 2017 and three times in 2018, a view that matches the Fed’s own projections.
As seen in the “Recession Probability” section, the average response as to the odds of another recession starting within the next 12 months was 15.00%. The individual estimates, of those who responded, ranged from 0% to 35%.  For reference, the average response in July’s survey was 14.78%.

As stated in the article, the survey’s respondents were 62 academic, financial and business economists.  Not every economist answered every question.



The current average forecasts among economists polled include the following:

GDP:

full-year 2017:  2.2%

full-year 2018:  2.4%

full-year 2019:  1.9%

Unemployment Rate:

December 2017: 4.2%

December 2018: 4.1%

December 2019: 4.2%

10-Year Treasury Yield:

December 2017: 2.60%

December 2018: 3.03%

December 2019: 3.31%

CPI:

December 2017:  1.7%

December 2018:  2.2%

December 2019:  2.3%

Crude Oil  ($ per bbl):

for 12/31/2017: $49.76

for 12/31/2018: $51.81

for 12/31/2019: $53.45

(note: I highlight this WSJ Economic Forecast survey each month; commentary on past surveys can be found under the “Economic Forecasts” label)
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I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.
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The Special Note summarizes my overall thoughts about our economic situation

SPX at 2438.21 as post is written

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