David P. Abney – United Parcel Service, Inc.
Industrial production and retail still growing but slower pace than projected
“The latest U.S. GDP forecast for the balance of the year remains unchanged. Industrial production in retail are still growing, although at a slower pace than originally projected. Online purchases, as a percent of retail, grew once again in the latest forecast. Growth rates in Europe are expected to continue to be resilient, with most economies rising. And in Asia, the outlook for China has improved, with growth in that market now exceeding the previous forecast.”
Industrial production forecasts were higher three months ago than today
“As we looked, though, at the current data, what we also noticed is although we are seeing some positive trends in many of the different industry types in B2B, we’re a little challenged because the number of stores that are closing is having an impact on growth in the B2B. And so the forecast for B2B, if you go back earlier in the year to today, is not quite as strong because of retail sales and also because industrial production forecasts were higher even three months ago to where they are today.”