Q1 2015: US Slows, Europe Gets a Boost

As the first quarter of 2015 draws to a close Morningstar economist Bob Johnson finds both the US and China economic forecasts may be too optimistic and Europe is on the up

Robert Johnson, CFA 2 April, 2015 | 2:16PM

U.S. economic growth is likely to remain lower than many believe, at 2% to 2.5%, but high enough to create labour market shortages.

The quarter's notable developments were the ECB quantitative easing programme which resulted in a sharply falling euro, weaker growth in China, bad weather again, and slowing U.S. exports.

Threats of labour scarcity are building, helping consumers but potentially sparking higher inflation and lower corporate profits.

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About Author

Robert Johnson, CFA  is director of economic analysis with Morningstar.

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