The year 2015 will be a great year for US consumers’ pockets, according to Nuveen Asset Management’s Bob Doll.
On Wednesday, Doll published his list of 10 forecasts for 2015. One of them is that US GDP will grow by 3% for the first time in ten years. The economy’s run will be so impressive that its growth may outpace emerging markets for the first time in several years. Doll is also predicting an uptick in consumer spending.
“With the exception of exports, the key parts of the U.S. economy are improving,” he wrote. “Especially impressive are the growth in jobs and the uptick in business and consumer sentiment. While falling oil prices have some negative economic consequences, the positives to
consumers and other users of oil should be a net benefit.“
Doll also released a presentation with charts and stats that back up his top forecasts, and the following two highlight his call for consumers.
First, this chart shows how the cost of energy and food as a percentage of total spending has tumbled to the lowest levels in nearly a decade. Doll is also forecasting that GDP may benefit from falling oil prices.
The second chart illustrates that payments on household debt as a percentage of disposable income remain low following the tumble during the financial crisis.