Economic Outlook: Financial Services Conference

We continue to anticipate subpar growth in 2010, with both the pace and composition of the expansion being very different than what we are used to or what we may wish. We are far from a sustainable growth trend in line with our historical experience. The expected pace of the expansion is characterized by real growth of 2.0 percent in the second half of 2010 with inflation (core PCE deflator) at … We continue to anticipate subpar growth in 2010, with both the pace and composition of the expansion being very different than what we are used to or what we may wish. We are far from a sustainable growth trend in line with our historical experience. The expected pace of the expansion is characterized by real growth of 2.0 percent in the second half of 2010 with inflation (core PCE deflator) at just 1.2 percent (Figure 1). Positive contributions to growth will likely come from rising consumer spending, business investment—particularly equipment and software, and of course, federal spending. The problem remains that the recovery represents a different type of cycle with the added complication of atypical behavior among core sectors—especially consumer spending and housing. Thank you for your interest in Wells Fargo’s Economic Commentary by email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by email registration page: http://www.wellsfargo.com/economicsemail.