2016 Economic Outlook Dennis A. Johnson, CFA Chief Investment Officer Points of View Fed achieves lift-off, future increase in interest rates will be datadependent. U.S. real GDP growth is projected to be 2.4% in 2016 versus 2.5% in Consumer prices are projected to increase by 2.1% in 2016 comparedto inflation of 0.2% in 2015. Michigans economy is projected to continue to grow in 2016, but at amore measured pace versus the last several years. Federal Reserve U.S. Economy Inflation Source: Federal Reserve Bank of Dallas International Economics Economic growth in the euro zone has stabilized Canada is a mixed bag Mexicos economy hanging in their despite weak energy prices India remains one of the fastest growing economies Japans economic growth remains volatile Chinas government transitioning the foundation of their economy for less volatile long-term growth Michigan Economy Conclusion U.S. economy expected to perform relatively well in 2016.
Inflations trends higher despite downward pressure from oil and theimpact of the strong U.S. dollar. Next rate hike by the Fed could occur at their March meeting. Economic growth in Michigan may begin to underperform the rest of theU.S. due to the maturation of the current auto cycle and the impact ofthe strong U.S. dollar on the manufacturing segment of the economy. Disclosure Comericas Wealth Management team consists of various divisions of Comerica Bank, affiliates of Comerica Bank including Comerica Bank & Trust, N.A., and subsidiaries of Comerica Bank including World Asset Management, Inc.; Comerica Securities, Inc.; and Comerica Insurance Services, Inc. and its affiliated insurance agencies.World Asset Management, Inc. and Comerica Securities, Inc. are federally Registered Investment Advisors.Registrations do not imply a certain level of skill or training. Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation. Securities offered by Comerica Securities, Inc. are not insured by the FDIC, are not deposits or other obligations of or guaranteed by Comerica Bank or any of its affiliates, and are subject to investment risks, including possible loss of the principal invested. Comerica Securities, Inc. is a broker/dealer, federally Registered Investment Advisor, member FINRA/SIPC and subsidiary of Comerica Bank. 29