Morgan Stanley economists say near term, a "vigorous" economic recovery "is virtually assured."
Sounds like a bold statement; we're not sure if they had a look at July retail sales before dishing that one out. The firm says a "strong revival in motor vehicle output is pacing the upturn, adding 3-4 percentage points to 3Q GDP."
MS says there's also signs of rising demand outside of car sales. "Demand is starting to improve in housing and infrastructure outlays, so even as vehicle output levels off in 4Q, overall growth should slip but remain positive," firm says. MS raises 2H US real growth forecast to 2.75% annualized from 1.25%.
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