Lower oil price is good news for US consumers – Danske Bank

FXStreet (Delhi) - Research Team at Danske Bank, continue to believe the lower oil price should be a net positive for the US economy.

Key Quotes

“We expect lower gasoline and energy prices, combined with increasing nominal wage growth, to support private consumption, especially at the start of this year. However, the effect fades through the year due to the expected rebound in oil prices.”

“Still, risk of contagion from the manufacturing slowdown to other sectors should not be neglected, especially if the manufacturing sector fails to recover.”