According to a leading economist, the US economy could be showing signs of halting the slide that it has experienced over recent years and could be getting ready to start its long crawl back. One of the leading reasons is the improved property and construction market, which has shown strong signs of recovery over recent months.
Speaking to CNBC Asia, Gary Schlossberg, who is the chief economist at Wells Capital Management, said: “I think it's interesting that the construction spending numbers do point to the fact that this recovery, such that it is, is being led increasingly by housing, which could provide some support to the economy later in the year.”
Housing continues to act as a bright spot within the US economy, while dropping fuel prices could lead to higher spending amongst consumers as the year moves on. Mr Schlossberg also highlighted that the decline in manufacturing was unexpected by many, as is the fact that many companies within that industry are struggling to fill vacancies.
Mr Schlossberg explained: “Clearly, there's caution on both sides of the ledger. They're not getting the orders, they're keeping inventories lean. On the other hand, there is that case that the labor markets may be a little bit tighter in some areas than they appear on the surface."
Much still depends on the economic certainty across the eurozone when it comes to the US recovery, but the signs are starting to point to a positive outlook.