Midwest Economist Says U.S. Economy Heading for a Downturn
A Midwest economist is predicting a slowdown in the economy beginning as early as the last half of this year. He says a number of factors are putting the U.S. economy at risk.
Creighton University economist Ernie Goss points to inflationary pressures, which are leading to higher interest rates as factors slowing economic growth. He says in the Midwest, trade tensions are “a clear and present danger” to the overall economy.
“The tariffs are now having some impact on buying from abroad and, of course, selling abroad," Goss says. "Those two factors are slowing the growth in the U.S. economy, the mid-state economy, the mid-American economy, the businesses we survey in this part of the country.”
He says manufacturers will likely see reduced international sales later this year because of tariffs.
“A lot of the companies that we survey report they’ve advanced exports," Goss says. "In other words, exports that would have taken place in September and October were advanced to June.”
Goss also notes climbing housing prices because of an increase in the cost of building materials and the limited supply of available homes. He also expects the growth in the U.S. debt to play a major role in any future economic slowdown.