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Economic Update

October 30, 2018

U.S. GDP is expected to grow 2.9% in CY2018, up from 2.2% in CY2017. Business and consumer sentiment remain favorable. Industrial production growth should accelerate to 3.7% in CY2018 from 1.6% last year. Full expensing of equipment investment and permanent corporate tax cuts make the U.S. tax code globally competitive and will support greater capital expenditure, which provides support to industrial activity.

We expect another year of sound global growth as the economic cycle plays out, with growth in the U.S. accelerating and the Eurozone and China slowing. World real GDP growth is forecasted at 3.2% in CY2018 and 3.0% in CY2019. Given the importance of access to global supply chains to U.S. competitiveness and jobs, it is important to have a policy environment that encourages free trade. Higher tariffs represent a downside risk to the economic outlook.

CY2017 CY2018 CY2019
U.S. GDP 2.2 % 2.9 % 2.6 %
U.S. Industrial Production 1.6 % 3.7 % 2.7 %
World GDP 3.2 % 3.2 % 3.0 %

All percentages are shown on a calendar year-over-year basis. Historical estimates are provided by the U.S. Department of Commerce, Bureau of Economic Analysis (BEA). For more information, please visit

Certain statements herein are considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements.

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