b'ECONOMIC FORECASTYet Oxford Economics expects it to follow the samebanker (bglco.com). general pattern as the GDP. We look for corporateSpecifically, companies have responded to China profits to rise by 4.9% in 2026, said Yaros. Thatstariffs by sourcing imports from other countriesa up substantially from the 0.5% expected when 2025move which has also lent succor to the nations numbers are finalized. Even so, the 2026 pacerecent supply chain ills. Lead times have diminished remains slower than the 7.9% clocked in 2024. as companies have found alternative or additional The expected 2026 rebound in profitability stemssuppliers, said Petryk. Those that relied on one from a belief that stimulus from Washington will liftor two vendors now have three, four or five.all boats. We believe the passage of the One BigBusinesses should also benefit from a decline in Beautiful Bill, with its tax cuts for businesses andthe cost of money over the coming months, as the households, should help the economy regatherFederal Reserve shifts its focus from fighting inflation some steam in early 2026, said Anirban Basu,to bolstering employment. We look for inflation to Chairman & CEO of Sage Policy Group (sagepolicy. peak at just above 3% when 2025 numbers are com). The legislations 100% bonus depreciationfinalized, and for the Fed to cut interest rates into should help fuel business investment, while large2026 until the federal funds rate falls to about 3%, tax refunds should invigorate consumer spending.said Yaros. That rate, while much higher than the Both activities are important drivers of the nationsrates of early 2022, is a considerable improvement economy. over the 4.3% of mid-2025.This stimulus from Washington is arriving at theDeclininginterestrates,whichencouragethe same time companies are getting a more solidlaunch of new projects, are also a reflection of footing on the nations shifting trade policy. Therelooser pockets on the part of the nations lenders. has been a bit of a shock to the system in andCredit conditions have improved significantly for around tariffs over the past year, and it is takingbusinesses, said Basu. Companies with strong some time for many operators to understand theirbalance sheets will find bankers very willing to impact, noted Andrew Petryk, Head of Industrialssupply debt. We also know that equity investors, at Brown, Gibbons Lang & Company, an investmentContinued on page 10'