CHICAGO--(BUSINESS WIRE)--Mesirow Financial’s chief economist has upgraded her forecast for the economy in 2014. Diane Swonk says, “Domestic demand appears to have finally taken root and is spreading.” Swonk expects to see a marked increase in business investment. “A surge in big-ticket spending, combined with a pickup in housing construction and continued improvement in the balance sheets of nonfinancial companies (particularly manufacturers), has begun to turn the tide on business investment.”
Consumers will provide the base for that expansion, with spending “expected to remain relatively buoyant in the year ahead, building on a strong end to 2013. Pent-up demand, a pickup in employment and … rise in wealth … will all provide support to spending gains. “
Pointing to a Federal Reserve led by a new chair, Janet Yellen, Swonk foresees no change in short-term interest rates before 2016, predicting that a Yellen Fed “wouldn’t mind if a few partygoers became tipsy, before pulling away the proverbial punch bowl, if that means more people are able to join the economic party.”
Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an independent, employee-owned firm with approximately 1,200 employees globally. With expertise in Investment Management, Global Markets, Insurance Services and Consulting, Mesirow Financial strives to meet the financial needs of institutions, public sector entities, corporations and individuals. For more information about Mesirow Financial, visit its website at mesirowfinancial.com.