By UBS analysts | As the US economic recovery completes its fifth year, direct policy stimulus is no longer being applied, but the economy is poised to move ahead on its own self-generating momentum. Real GDP growth is expected at 2.9% in 2015 and 2.8% in 2016. Less slack in the labor market along with accelerating labor demand should soon be accompanied by somewhat faster wage gains to boost household incomes, confidence and spending. A rising industrial capacity utilization rate should help trigger more sustained gains in capex. And a falling residential rental vacancy rate should further stimulate rents and residential construction.
MADRID| By The Corner | Spain is to lead the EU economic recovery until 2018, according to Morgan Stanley. External sector, capital spending and internal demand would be the factors pushing the country’s growth. Regarding capex, Spanish businesses are the most inclined to rise their investment expenditure in manufacturing during year 2014 in order to boost production capacity.