Q4 2015 Economic and Market Perspectives


The net impact of continuing U.S. dollar strength, declining global demand for U.S. products and the slumping energy sector contributed to disappointing preliminary measures of U.S. manufacturing in mid-September as manufacturing activity growth slowed to its weakest point in nearly two years. Manufacturing employment also appeared to take a breather with forecasted manufacturing payroll growth up only slightly-at its weakest level since July 2014.

While the goods-producing sector of the domestic economy disappointed expectations, the services sector turned in somewhat stronger results helping to push estimated third quarter GDP growth to an annualized 2.4%. This follows the rebound in second quarter GDP growth of 3.9% after sluggish first quarter growth of 0.6%.