Economy 'stronger than people think,' bank CEO says
Wells Fargo boss John Stumpf thinks growth will rebound in the second quarter.
The U.S. economy is "stronger than people think," Wells Fargo (WFC) Chairman and CEO John Stumpf told CNBC on Thursday.
"We were all surprised by the first-quarter GDP," he said in a "Squawk Box" interview. "Who knows what second quarter will be, but I think it will surprise on the upside."
Gross domestic product contracted at a 2.9 percent annual rate the first quarter, the economy's worst performance in five years. Economists expect GDP to growth around 3 percent in the second quarter.
If you exclude housing, Stumpf said, the economy is better now than it was during the boom years of 2000 to 2008.
"Energy is booming, way better than it was then . . . autos, they might sell 17 million new vehicles this year." He also said U.S. manufacturing is coming back and so is agriculture.
"Commercial real estate, I was in Atlanta yesterday, you'd think there was a crane convention there. You go to almost every city, there are cranes everywhere," Stumpf said.
On the residential side of real estate, the Wells Fargo CEO said he's "quite bullish," noting that housing is up 8 percent year over year. But he did have some concerns.
"There's this view that credit is not as available, which is true in some cases. There's a lack of [home] inventory. In other cases, borrowers can't qualify. Student debt has some influence."
Stumpf said Wells Fargo's wide-ranging businesses reflect the larger economy.
"People think of us as mortgage . . . but there's 89 other businesses. We're the largest auto lender. We do more commercial estate, more energy, more [agriculture], more middle market, more small business," he said.
More from CNBC
- Another reason businesses can’t fill their jobs
- As Wells Fargo goes, so goes the nation?
- Foreclosure activity at lowest level in eight years
Microsoft cutting 18k jobs because....wait for it.... "the economy is stronger than we think"
Not that I'm in complete agreement, but the Economy is "stronger than what many seem to think".
In my opinion, much of this may be very Regional in nature, other places are still in distress.
But some of those places were in distress long before the Recession..
ie; Detroit,MI. Gary, IN. New Orleans, LA., parts of the greater Chicago area, other Cities in the Southern States and California...etc.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.