The Conference Board Economics Watch® United States View

  • Authors:
    Kathy Bostjancic
  • Publication Date:
    March 2014
  • Report Number:
    EWUV_V4N3

We view the winter slowdown in economic activity as a temporary pause.  The eventual arrival of warmer spring weather should propel the housing and labor markets forward. In turn, the strengthening of aggregate demand should incentivize companies to finally pick up the pace of their investment.  Beyond the anticipated near-term rebound in housing activity, the medium-term outlook for the residential housing market looks to remain bright due to an expected rebound in household formation.  The main downside risk to the economy is that the buildup in inventories will not be matched by a rise in aggregate demand.  

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