Ron Insana's US Economic Outlook For 2015

The US Federal Reserve today revised its final estimate for third-quarter U.S. economic growth to 5% annually following which the Dow Jones scaled above the 18,000 peak.

Ron Insana, Senior Analyst and Commentator at CNBC provided his outlook for US economic growth in 2015.

“You look at retail sales in November […] they are up 7/10p, you look at auto sales they are running at 17.4 million annual rate. The third quarter number was boosted by healthcare services spending which was up, added a half percentage to GDP, but even if you take that out we are still running at a 4.5p rate, which is pretty good and the consumer is spending more,” Insana said.

He continued, “The third quarter report was stronger than expected, corporate profits were better than expected, exports were better than expected, inventory less of a drag. So, it might be sustainable, not necessarily at 5%, but certainly between 3 and 4 and going into next year you might think that the momentum will carry on.”

Is US Pulling The World?

“Yeah, I mean, listen I have been talking to [Fortress] America now for two and a half years […]and I think that’s the case, you have lower energy prices, manufacturing is coming home. You have a whole host of technological innovation, that’s very very important, the big drag still is housing and some aspects of the employment market, but when you look at what’s going on overseas, that’s a risk, that’s the world that is slowing down as we are accelerating, so, there could be a bit of a drag on US growth from that,” Insana added