As the Rolling Stones famously said—“you can’t always get what you want.” But according to PIERS/JOC economist, Mario Moreno, the transportation industry might still “get what it needs” to fully recover, just much slower than previously anticipated.
According to The Journal of Commerce Container Shipping Outlook—2nd Quarter 2011, the outlook for U.S. real income growth is suddenly less upbeat now than it was earlier in the year. The dip caused participants in the Federal Reserve Bank of Philadelphia’s ‘Second Quarter 2011 Survey of Professional Forecasters” to slash their predictions for 2011 growth from an average of 3.2 percent to just 2.7 percent.
Unless you’ve been living under a rock, U.S. residents know all too well the cause of this deflated optimism. The U.S. Congress, discouraged with job growth efforts, is now turning its attention to deficit reduction and away from employment, says Moreno.
Globally, a combination of structural factors and natural and man-made economic shocks have worked to sharply undermine confidence in the global economic recovery that began in 2009. While the recovery has not been derailed it has been continually challenged by circumstances largely beyond the control of economic policy authorities.
Ultimately, the industry is still on the path toward recovery, but is likely to remain on a flatter trajectory than economic recoveries of the past. The implication for trade is that it will continue to grow but at a more moderate pace than had been projected in 2010 and early in 2011—forcing companies to take a much more realistic look at their plans for the rest of the year.
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