MBC St. Louis Economic Forecast Focuses on Government Gridlock

ST. LOUIS – On day three of the U.S. government shutdown about 200 business leaders gathered for the 10th annual Midwest BankCentre (MBC) economic forecast breakfast for a look at the economic impact of persistent government gridlock.  Guest speaker John Canally,CFA, senior vice president and economist at LPL Financial, offered his perspective on the federal shutdown in Washington D.C.  The economic forecast breakfast was held on Oct. 3, 2013 at the Frontenac Hilton in Frontenac, Mo.   Ron Barnes, chairman of MBC, chaired the event.

            Canally observed that the short term impact of the government shutdown appears to be 13 percent of government spending and approximately 800,000 of the 2.7 million federal workers furloughed.  As for lingering effects, Canally noted that the S&P 500 has on average increased 11 percent one year after a government shutdown. 

            Canally noted that the U.S. remains “the best home on a bad street” when compared to the international investment opportunities and favors small cap stocks. 

            Barnes also offered his perspective on the economy. “We’re seeing a sub-par recovery so far,” noted Barnes.  “While the jobless rate has shown some improvement, the fear is that many of these jobs are lower paying and won’t be sufficient to sustain a healthy level of consumer spending.”

Canally has frequently been quoted in publications such as USA Today, Washington Post and TIME Magazine and has been a guest on national business broadcast media including NPR, CNBC, Bloomberg and Fox Business News. 

LPL Financial is the nation’s largest independent broker-dealer and serves its customers with more than 13,300 financial advisors and approximately 700 financial institutions.

Founded in 1906, Midwest BankCentre (www.midwestbankcentre.com) provides integrated financial services with an expertise in commercial and retail banking, including checking and savings accounts, business cash management, mortgage lending and wealth management.  As a community bank, MBC makes decisions on a local level and clients have full access to the executive team. Since 2001, it has consistently achieved the BauerFinancial 5-Star Superior financial rating.