With economic uncertainty looming before 2020 rolls around, a new economic outlook from Fannie Mae reveals that housing could be the key to economic growth in 2020.
"As we forecasted, housing supported the larger economy in the third quarter, and we expect it to continue to play a productive role through the first half of 2020," said Doug Duncan, Fannie Mae senior vice president and chief economist, according to HousingWire.
"Positive contributions from single-family housing construction, home improvements, and brokers fees pushed residential fixed investment growth to a robust 5.1% annualized pace this past quarter, and we forecast continued but moderating strength as construction activity and home sales growth continue at a slower pace."
While the housing industry could very well be a contributor to economic growth in 2020, the report still revealed that consumer spending will remain the primary driving factor of economic growth in 2020.
"A stronger-than-expected third quarter contributed to the downward revision to our fourth-quarter forecast, as some of the previously expected weakness in trade and inventories appears likely to have been pushed back into this quarter," said Duncan, according to the report.
"Still, consumer spending is likely to continue driving the expansion forward, and with the passage of the budget act and a reprieve in trade tensions we’ve revised upward our forecast for full-year 2020 growth."
To learn more about the economic outlook for 2020 and how it could be impacted by the housing industry, click on the image above.