CIO of BOK Financial Corp. Says Economy Is Mixed Bag

The state of the U.S. economy is a mixed bag.

Consumer confidence is increasing, while the manufacturing industry is struggling, economist Jim Huntzinger said.

Huntzinger, who is chief investment officer for BOK Financial Corp. of Tulsa, reports on the worldwide economy in the video series, Economic and Market Insight. BOK Financial is the publicly traded parent company of Bank of Arkansas, which has a branch in Fayetteville and Bentonville.

“Consumer confidence is on an upswing, a strong upswing,” Huntzinger said. “Consumers really have a lot going for them.”

Low gas prices, lower unemployment rates, 30-year fixed rate mortgages at 3.7 percent and auto loan rates at 3.2 percent are some highlights.

But the challenge in this economic recovery, Huntzinger said, has been that consumers are reluctant to spend. They are employed again and have received pay hikes, but instead of spending, they save money or pay off debt.

While this is good for long-term economic health, “in the short run, we’re an economy built on consumption,” he said.

Manufacturing is struggling because of the oil and gas industry, the strength of the dollar and weaker foreign markets.

 Oil and gas companies aren’t buying steel for rigs and pipelines. And for manufacturers that sell to other parts of the world, “their ultimate markets have been weak.”

The following are other points Huntzinger discussed:

• 2015 was a record year for truck and passenger car sales, and sales have been good so far this year.

• The Federal Reserve likely won’t increase interest rate in June.

• Little to no economic growth in Europe, Japan and China.