"Update: Looking For Stronger Economic Growth For 2014"

[applegrove]

Update: Looking For Stronger Economic Growth For 2014

by Bill McBride at Calculated Risk

http://www.calculatedriskblog.com/2013/12/update-looking-for-stronger-economic.html

"SNIP....................................


1) The apparent budget deal takes a key downside risk off the table, and reduces the impact of the sequester.

2) Household balance sheets are in much better shape - and it appears that in the aggregate, household deleveraging is over. The Fed just reported the first increase in total mortgage debt since Q1 2008. See: Fed's Q3 Flow of Funds: Household Mortgage Debt increased slightly, First Mortgage Debt increase since Q1 2008, NY Fed: Household Debt increased in Q3, Delinquency Rates Improve, and Fed: Household Debt Service Ratio near lowest level in 30+ years

3) State and local government austerity is over (in the aggregate).

4) The housing recovery should continue. Housing has slowed recently (new home sales, housing starts), but the overall level is still very low and I expect further growth in 2014.

..................................SNIP"