MARCH 2004

Conference Board Forecasts Boom Ahead

The Conference Board’s latest economic forecast predicts that the U.S. and other major economies are on the brink of a genuine economic boom and will likely record the best year since 1984. The Board predicts that our economic growth will reach 5.9% this year, somewhat above the predicted global growth of 5%. The Board anticipates a low rate of inflation, at about 2.2%. However, inflation is expected to be "nudging up" to 3.2% next year. Further, the Board’s Chief Economist, Gail D. Fosler, predicts, "The U.S. economy and world economies are in the virtual phase of a strong economic cycle in which accelerating growth generates productivity and profits, and rising employment pushes wages higher and higher while commodity prices create a new phase of income-driven consumer spending."