RALEIGH, N.C.—U.S. bankers largely expect the U.S. economy to stay the same or weaken this year, according to new survey.
Eighty-four percent of the U.S. bankers surveyed by Sageworks last week told the company that they expect the economy to be about the same, weaker or significantly weaker this year in comparison to last year. Just 16% of respondents expect the economy to be stronger or significantly stronger in 2016.
This new data comes on the heels of last week’s GDP growth numbers showing growth of 0.7% during the last quarter of 2015. In the third quarter, GDP grew by 2%. Sageworks Chairman and Co-Founder Brian Hamilton noted, “A 0.7% GDP growth rate is near dismal. It means the economy is experiencing next to zero growth, which reflects poorly for future job growth as well as the overall economy.”
The survey, conducted between Jan. 29 and Feb. 3, asked executives, credit professionals, lenders and accountants within financial institutions to answer the following question: “What do you expect the strength of the economy to be in 2016 as compared to 2015?”
Sixty-one percent of respondents expect the economy to be “about the same,” just over 21% expect it to be weaker, and 1% expect it to be significantly weaker. In contrast, 15% of those surveyed do expect a stronger U.S. economy this year and 1% expect it to be significantly stronger. Hamilton suggested that where the U.S. is now in the economic cycle may not bode well for the 2016 economy.
“The economy has been growing strongly for six years and we may be due for a slowdown,” he said.