Join The Discussion

 

RadioShack sees stock jump on investment report

Fort Worth-based RadioShack saw its stock increase as much as 45 percent on Friday as investor Standard General LP said it was continuing talks on new financing for the electronics retailer.

read more >

Fort Worth couple gets in 'Shark Tank,' comes out with deal

A Fort Worth couple who started a business when they couldn’t sleep, were the first entrepreneurs to get a deal on ABC’s Shark Tank in the season premiere on Sept. 26.

read more >

20 from Dallas-Fort Worth on Forbes wealthiest list

There are 20 Dallas-Fort Worth residents listed among the 400 richest Americans, according to the Forbes 400 list of The Richest People in America 2014.

read more >

Internal audit says EPA mismanaged Fort Worth project

FORT WORTH, Texas (AP) — An internal audit by the U.S. Environmental Protection Agency reveals the agency mismanaged an experiment using new ways to demolish asbestos-ridden buildings.

read more >

Texas Wesleyan acquires two strip shopping centers on East Rosedale

Texas Wesleyan University has purchased two strip shopping centers on East Rosedale Street across from its Southeast Fort Worth campus, the university’s president said Friday.

read more >

Economist: U.S. economy is growing, companies are hiring

 

Mark Dotzour

A. Lee Graham
lgraham@bizpress.net

Viewed through the lens of diminished expectations, the U.S. economy is growing, homebuyers are snapping up properties, and private companies are hiring again.

In fact, a leading economist says 2014 is shaping up to be a promising environment.

“I’m pretty optimistic about next year,” said Mark Dotzour, chief economist with the Texas A&M University Real Estate Center.

Speaking Dec. 4 at a Society of Commercial Realtors breakfast at Colonial Country Club in Fort Worth, Dotzour described the economy as growing at a 2 percent pace, 2 to 3 percentage points slower than he said it should be growing.

Still, as measured from the economy’s sliding scale, Dotzour considers that good news.

“We’re going to get 2 percent again and maybe a little more this coming year,” said Dotzour, calling the pace “tepid.”

“I’ve decided tepid is the new excellent,” said Dotzour, blaming the diminished standard, at least in part, on a presidential administration he believes is not nurturing job growth. In fact, the economist likened Washington leadership to a governor device restraining speed on golf carts.

“The government is part of the drag on the golf cart,” Dotzour said.
Far from dragging down the economy are consumers, whose spending constitutes about 65 percent of the gross domestic product.

“We are world class at buying stuff. We can out-buy anybody on the planet,” said Dotzour, pointing to recently released Department of Commerce numbers showing personal spending as accelerating.

Housing is picking up a considerable chunk of the nation’s $75 trillion household net worth after diminished home values stalled sales in recent years, Dotzour said. Furthermore, household debt is dropping.

According to the Board of Governors of the Federal Reserve, household debt service payments as a percentage of disposable personal income has fallen to less than 10 percent compared to 13.5 percent in recent years.

“We are below the bottom of the normal range of income that goes to debt,” Dotzour said.

Hiring looks promising next year, with 32 percent of CEOs surveyed saying they plan to hire in 2014, according to the Business Roundtable, a group of conservative CEOs promoting pro-business public policy.

And manufacturing will pick up steam, Dotzour said.

“As we grow into energy independence in the production of natural gas and oil, the lower price of natural gas will make it even easier for these manufacturers to be globally competitive,” Dotzour said.

Despite public perception to the contrary, almost 4 million job openings are waiting to be filled, according to recently Bureau of Labor Statistics information. Among those 3.9 million total job openings nationwide are those in construction, manufacturing, retail, professional business services, health care and government.

“The bottom line is American people do not tolerate deferred gratification. They have net worth, and have money to spend, and job growth is increasing at a tepid rate. That’s why I’m bullish for 2014,” Dotzour said.
 

< back

Email   email
hide
Arena
What do you think of the new plans for a new Will Rogers arena and changes at the Convention Center?