US: Growth should remain solid – Deutsche Bank

Analysts at Deutsche Bank suggest that the US growth should remain solid as the drivers of growth broaden and they expect only a modest boost from tax cuts.

Key Quotes

“US growth has picked up: back-to-back 3%+ growth in Q2 and Q3

• We expect 2.8% growth in Q4, lifting 2017 growth to 2.6% (Q4/Q4), strongest since 2014.”

“Growth drivers have also broadened, as stronger capex, trade have joined resilient consumer spending.”

“Solid performance should continue into 2018

• Solid balance sheets, elevated optimism support consumer
• Capex lifted by firmer energy prices, solid global growth, and elevated business sentiment
• Financial conditions are at record easy levels.”

“Modest boost from tax cuts (a few tenths), if they occur.”

“Potential growth has been subdued but should pick up modestly

• Some scope for tepid productivity growth to improve.”