NADA chief forecaster bullish on the economy

NADA chief forecaster bullish on the economy

NADA chief economist Paul Taylor recognizes that consumer confidence and spending are being affected by the uncertainty of economic growth, bolstered by things like the disaster unfolding in the Gulf of Mexico. But he doesnt think were in for a double dip or W curve in the economy. He believes that the economy will continue to recover at a modest pace, with the prospect of a double-dip only a remote possibility.

News on home prices stabilizing in the second quarter will help boost car sales, Taylor says, since a majority of households have most of their net assets represented by home equity. And despite high unemployment, he says jobs are being created and there are positive signs for long-term economic growth, including extremely low inflation.

WANADA members might also be interested to hear that in the Washington Area unemployment is just 6 percent, the lowest in the U.S. for urban regions with at least one million residents.

What does it all add up to? Taylor sees an 11.3 million new vehicle sales year for 2010 and a faster recovery for the Washington Metro Area than the rest of the country.