The latest SA Rand Price Forecast: Bear Flag suggests the continuation of the U.S. economic recovery after a short term lull. This is the third quarter’s forecast. The first quarter indicated that the economy was poised to rebound, but not with much vigor or strength. However, the second quarter saw a strong rebound in the gross domestic product (GDP), unemployment rate and job gains, and it looks like the third quarter will be quite similar.
The SA Rand Price Forecast: Bear Flag continues to emphasize a number of key indicators that are related to the overall state of the U.S. economy. The indicators include consumer spending, business spending, industrial production, gross domestic product (GDP), unemployment, and stock market activity. It also examines how the Federal Reserve plans to increase interest rates.
The SA Rand Price Forecast: Bear Flag sees strong growth in consumer spending and the manufacturing sector in Q3. The consumer side of the report looks at the change in the total consumer expenditure category. The retail industry, transportation and utilities, and leisure and hospitality make up the change category. The service sector, education, healthcare, government, energy, banking and finance, and business activities also fall into the change category.
The SA Rand Price Forecast: Bear Flag also sees strong growth in business spending and industrial production in Q3. This includes construction of new warehouses, hotels, and restaurants. It also expects business spending on machinery, property, and software.
The SA Rand Price Forecast: Bear Flag sees an increase in labor market activity and wage inflation in Q3, which could lead to job growth. Wage inflation will occur because of a stronger demand for workers and their goods. This means the cost of living is likely to rise. It is likely that inflation will rise across the board and not just in the consumer sector.
Inflation is also expected to rise across the board due to increases in the prices of imported goods, the increase in the price of oil, and the increased price of gasoline. All three factors combined, which are called the “catch-up effect” will result in higher prices for a time. goods and services. This, in turn, should lead to lower sales and lower consumption, leading to lower inflation.
The SA Rand Price Forecast: Bear Flag does not expect the United States to see any significant improvement in its trade deficit in Q3. because of slow exports to the rest of the world, but it does look for a reduction in imports.
Overall, the SA Rand Price Forecast: Bear Flag is likely to continue to focus on economic indicators like consumer spending, industrial output, and employment growth to monitor the U.S. economy. It will probably be a bit more optimistic in the fourth quarter of its forecast and look for better job growth.