Oregon Economy still has the green light, but for how long?
The Oregon Economic Office of Economic Analysis' released its most recent forecast.
In his blog, Economist Josh Lehner said, "Current economic growth remains strong. Nearly all leading indicators are flashing green, signaling solid gains in the near-term. However, the economy is set to slow moving forward for a number of reasons."
The obstacles Lehner listed included the tight labor market, infrastructure, higher energy costs, and capacity utilization, among other issues.
He said these won't prevent companies from expanding and growing the economy, but it will take time, planning, and money to overcome.
Lehner said federal policies are where the economic outlook becomes foggy.
He said, "As the tax cuts and spending increases play out at the federal level, fiscal policy will turn from a driver to a drag on growth in 2020. Similarly, monetary policy will have transitioned from accommodative to neutral, and likely even restrictive in a couple of years. The full impact of the Federal Reserve's rate hikes that began in late 2015 will be working to slow the economy."
For now, Lehner said Oregon's economy will continue to "hit the sweet spot."