2014 ended on a positive note for many people. The U.S. posted a positive jobs report, as employers added 252,000 jobs in December, according to the U.S. Bureau of Labor Statistics. Jobs additions in October and November were also revised upward.
In addition, CEO confidence, which declined during the third quarter, increased during the fourth, according to the Measure of CEO Confidence from The Conference Board and PwC.
Nearly half of CEO respondents expect economic conditions to grow in the next six months, and 44 percent expect conditions to remain the same. That confidence stems from conditions in the U.S., according to Lynn Franco, director of economic indicators at The Conference Board, as expectations for growth in Europe, China, Japan and Brazil are "less positive."
Even though the unemployment rate dropped to 5.6 percent in December, the lack of significant wage growth continues to dampen the outlook of some. Wages are an important piece to building consumer confidence and consumer spending – key elements to continued economic growth. That said, signals of wage increases aren't showing up in the establishment survey yet. Will 2015 finally see this trend turn around?
Many, including Franco, predict that the Fed will start increasing interest rates during the first half of the year. Federal Reserve Chair Janet Yellen indicated at the end of the Fed's December meeting that rates will stay near zero for the first quarter, but increases will begin later this year.
