The U.S. economy will continue to grow throughout 2015, with real GDP forecast to grow at a pace of 3.1 percent, according to a new report from BMO Economics, a unit of BMO Harris Bank.
The report attributes the positive growth to several factors. Among them: reduced oil prices, as well as robust gains in consumer spending, the labor market, new housing starts and business investment.
“Consumer spending and housing look to lead economic growth this year, more than offsetting weakening net exports and ebbing business investment flows, particularly in the oil sector,” says Michael Gregory, head of U.S. Economics, BMO Capital Markets. “While wage trends continue to disappoint, for consumers and the economy as a whole, this is being more than offset by the sheer number of jobs being created.”
In the Midwest, Illinois is positioned to accelerate growth for the second straight year, with low oil prices, increased consumer spending and business investment driving the state forward.