Bloomberg News

Ford’s Hughes-Cromwick Comments on Economists’ Survey Results

Published on Bloomberg Terminal on February 25, 2008

By Ken Prewitt and Tania Haas
Feb. 25 (Bloomberg) — Ellen Hughes-Cromwick, Ford Motor Co.’s chief economist and the president of the National Association for Business Economics, comments on NABE’s latest survey results. She spoke in an interview from Dearborn, Michigan.

On the survey’s results:
“We’ve got 50 forecasters on our panel, and they’ve been through a few business cycles. They’ve looked at some of the dynamics and the fundamentals over the course of many years. What we see in these results is still quite a weak housing market but rising concerns around credit-market turmoil. And the results seem to indicate that that pain associated with the turmoil is what marked down the forecast, particularly for the first half of this year.”

On the reasons for the credit turmoil:
“One of the factors, of course, is that lending standards are tightening and that credit availability has diminished for
certain markets and for certain types of customers. That had an effect, particularly when we look at the forecast for business
fixed investments as well as consumer spending, so we had a much slower growth track there for the outlook.”

–With reporting by Vonnie Quinn in New York. Editors: Charles Siler, Joe Sabo.