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The Conference Board Economics Watch® United States View—December 2018

The Conference Board, Inc., 8 pages, January 2, 2019
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The gap between the consumer and the business outlook widens.

Document Highlights

Consumer demand is set to remain strong in 2019 thanks to low unemployment, rising wage growth, and robust consumer confidence. Businesses, though, face a riskier profit environment. Labor costs are rising, and firms will face higher financing costs as the Federal Reserve continues to raise interest rates in order to contain inflationary pressure. Furthermore, trade tensions and weakening demand abroad could reduce revenues and increase costs. Still, new investments can help make workers more productive, helping to reduce wage bills.

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