Deloitte: Executives Optimistic About US Economy in 2015

Capital investments, deals expected to increase; Mideast turmoil not necessarily biggest challenge

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Oct 01, 2014, 08:55 ET

NEW YORK, Oct. 1, 2014 /PRNewswire/ -- Most executives (87.8 percent) expect the U.S. economy to grow in 2015, according to a recent Deloitte poll. Increased corporate capital investments are expected to have the biggest positive impact on the U.S. economy in 2015 (24 percent) and M&A activity is expected to increase (47.3 percent).

"I typically work with companies during times of change—during crises and growth," said Deloitte Financial Advisory Services LLP CEO David Williams. "Whether they're looking to emerge from a regulatory or litigation challenge or they're poising themselves for transactions, the executives I know are optimistic and moving ahead with confidence right now. We're seeing big growth in sales and earnings, while improvements are made in hiring, in most sectors. Things aren't perfect, but I'm bullish on the state of the U.S. economy in 2015."

Middle East turmoil (34.7 percent) is the biggest global challenge respondents say the U.S. economy will face in 2015.

"Shocks from outside the U.S. and internal fiscal policy mistakes are likely the biggest challenges to continued U.S. economic improvements in 2015," said Ira Kalish, chief global economist, Deloitte Touche Tohmatsu Limited. "Unless the situation in the Middle East worsens considerably, I don't expect it to be as big a challenge as stagnation in China or Europe would be in the new year. The Federal Reserve will have an interesting year ahead balancing concerns about inflation with concerns about employment."

When asked what the Federal Reserve will do in terms of tightening monetary policy in 2015, 18 percent of respondents said the Fed would tighten appropriately, 20.7 percent said the Fed would tighten too soon and 36.7 percent said the Fed would tighten too late.

About the online poll
More than 2,420 professionals responded to poll questions during an Aug. 27, 2014 webcast, titled "2014 Mid-year Outlook: Driving Growth in the Age of Global Uncertainty." Respondents work in a range of sectors including banking and securities, technology, investment management and process and industrial products. Click here to listen to the webcast.

As used in this document, "Deloitte" means Deloitte Financial Advisory Services LLP, and its affiliate, Deloitte Transactions and Business Analytics LLP. Deloitte Transactions and Business Analytics LLP is not a certified public accounting firm. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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SOURCE Deloitte