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Subject

Strong economy story stuttering.

Significance

Headwinds including a weakening housing sector, tightening credit conditions and dimming prospects for global growth will constrain US growth. Uncertainties related to business investment, oil price volatility and domestic political gridlock are rife with downside risk.

Impacts

Even as it continues to tighten, the labour market will remain solid with job gains easing modestly.

The housing market is considered a bellwether for US economic performance, but demand and supply constraints will weigh it down this year.

Business investment faces many headwinds -- oil price volatility, fading fiscal stimulus, tighter financial conditions and trade tensions.

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