Improvement in key sectors of the US economy should be sufficient to offset the fiscal drag of a retrenching federal government and a more difficult global trade environment. Widely discussed economic limitations are slow global growth, US debt and deficit and other sovereign concerns. On the positive side: Fed easing is supporting investment, the housing market is strengthening and consumers and businesses are in good financial positions. Early-year policy actions should reduce uncertainty about the future environment. Better understanding of the policy direction may lead business to increase hiring and fixed investment.
Source : UBS AG