BMO Blue Book: Economic and Business Outlook
The U.S. economy remains sturdy. Led by consumers, real GDP appears to have picked up to a 4.5% annualized rate in Q3 from 2.1% in Q2. That's not the speed one would expect after the most aggressive course of monetary tightening in four decades. But some lingering pent-up demand from the pandemic, still healthy job creation, and rising real wages are buttressing demand. Moreover, fiscal policy remains stimulative, with the budget deficit clocking in at around 7% of GDP in the past year. Also supportive are tax credits and subsidies provided by earlier legislation to help refurbish the nation’s physical and electrical infrastructure and reshore production of EVs, batteries and microchips.
The new flagship research publication, BMO Blue Book, features leading BMO experts across BMO Economics and Commercial Bank, providing insight on the U.S. economic and business outlook.