WASHINGTON, Oct. 20 /PRNewswire/ -- Sluggish job creation and modest consumer spending continue to spur slow economic growth according to the October 2010 Economic Outlook released today by Fannie Mae's (OTC Bulletin Board: FNMA) Economics & Mortgage Market Analysis Group. The economy is expected to grow at a rate below two percent in the current quarter before picking up modestly in the first half of 2011 and strengthening in the second half of next year. The current outlook remains clouded with uncertainty and has not changed materially from the previous forecast, with 2.2 percent growth projected for all of 2010, followed by a 2.5 percent pace for 2011.
"The labor market has yet to make significant progress, which is the primary reason for our continued weak growth forecast," said Fannie Mae Chief Economist Doug Duncan. "With economic growth slowing, job creation also has been tepid, keeping the unemployment rate high. Housing sales will likely be soft until the labor market strengthens."
For an audio synopsis of the October 2010 Economic Outlook, listen to the podcast on the Economics & Mortgage Market Analysis site at www.fanniemae.com. Visit the site to read the full October 2010 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, and Housing Forecast.
New this month and available via link from the Economic Developments Commentary is an article by Doug Duncan on current attitudes and expectations for homeownership and renting based on results from the Fannie Mae National Housing Survey.
Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economics & Mortgage Market Analysis (EMMA) group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the EMMA group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the EMMA group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
SOURCE Fannie Mae