The April 2018 Wall Street Journal Economic Forecast Survey was published on April 12, 2018. The headline is “Powerful Forces Seen Restraining U.S. Pay Growth.”
I found numerous items to be notable – although I don’t necessarily agree with them – both within the article and in the “Economist Q&A” section.
A majority of the 60 economists surveyed this month by the Journal said three factors are meaningfully holding down readings on wage growth: low productivity growth, demographic changes, and foreign competition and globalization. Other possible explanations, such as hidden slack in the labor market or government regulation, were cited by fewer than half of forecasters.
As seen in the “Recession Probability” section, the average response as to the odds of another recession starting within the next 12 months was 15.33%. The individual estimates, of those who responded, ranged from 0% to 35%. For reference, the average response in March’s survey was 13.66%.
As stated in the article, the survey’s respondents were 60 academic, financial and business economists. Not every economist answered every question. The survey was conducted April 6 – April 10, 2018.
The current average forecasts among economists polled include the following:
full-year 2018: 2.8%
full-year 2019: 2.5%
full-year 2020: 2.0%
December 2018: 3.8%
December 2019: 3.6%
December 2020: 3.9%
10-Year Treasury Yield:
December 2018: 3.18%
December 2019: 3.49%
December 2020: 3.62%
Please Note – The above is excerpted from the EconomicGreenfield.com (published by RevSD, LLC) post of April 12, 2018, titled “The April 2018 Wall Street Journal Economic Forecast Survey”
RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by these outside parties.
RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future weak(ening) economic conditions, and offers businesses and other entities advice, strategies, and actionable methods on how to optimally adapt to such challenging, complex conditions.