Fannie Mae Economic Forecast Holds Steady

Still sees U.S. economy growing at a sub-par rate of 1.7%

Fannie Mae’s (OTC Bulletin Board: FNMA) Economic & Strategic Research (ESR) Group’s full-year economic growth forecast remains unchanged in June from the prior forecast of 1.7%, the GSE said Monday.

Recent data emphasize the uneven nature of the current economic expansion. Consumer spending and housing activity have picked up, but a slowing trend in hiring and business investment has increased downside risks to the forecast, Fannie said. Headwinds facing businesses include declining profits, weakening productivity, and rising labor costs.