Virginia Bankers Association 2016 CFO Conference Highlights

The Virginia Bankers Association (VBA) held its annual CFO conference in Richmond, Va., on August 28-30, 2016. DHG was honored to be one of the sponsors and presenters at this elite event. The following are selected comments from various speakers at this year’s conference.

Economic, Political & Business Climate Update

Roger Tutterow, Ph.D., Professor of Economics at Kennesaw State University, retained a mostly upbeat view of the U.S. economy during his presentation. He touched upon jobs slowly returning to the U.S. in manufacturing and related areas as rising labor costs in Asia have helped narrow the wage gap with U.S. workers.

Tutterow acknowledged that the current economic recovery has been sustained by consumer spending, focusing on growth in home sales and car and light truck sales. He noted falling energy prices and pull-through of pent up demand that had been building during the recession has fueled consumption spending. Additionally, he expects the decline in housing inventories in the U.S. will contribute to future increases in housing construction as builders look to replenish depleted inventory. Tutterow noted that the overall increase in housing is being driven by increases in multi-family projects, which appear to be a result of millennial generation demand.

While positive about the economy due to sustained and rising employment and consumer spending levels, Tutterow mentioned on a cautionary note that the U.S. economy continues to be hampered by a stronger dollar and the effect of domestic goods becoming relatively more expensive abroad.