Univest In The News
Federal Reserve Official Predicts Moderate Economic Growth, Slightly Higher Unemployment Rate, And Improving Inflation At Univest Economic Series
SOUDERTON, Pa, February 8, 2007 – Predicting moderate economic growth in the U.S. economy during 2007, Richard W. Lang, Ph.D., executive vice president of the Federal Reserve Bank of Philadelphia, yesterday provided overviews of the national and local economies at the first Economic Series sponsored by Univest National Bank and Trust Co. (listed on NASDAQ: UVSP). During the presentation, Lang noted that employment growth in the Philadelphia suburbs has been strong, and Montgomery County’s and Bucks County’s unemployment rates are below the state’s and the nation’s.
“Univest is sponsoring the Economic Series as a means of providing vital economic information to our corporate banking customers and our communities,” said Philip Jackson, Univest’s market president for Montgomery County. “Dr. Lang is an outstanding authority on the local and national economies, and we know local businesses will benefit from his insights.”
Lang’s PowerPoint presentation can be downloaded from the Univest Web site at www.univest.net.
National Economy: GDP and Unemployment Up; Inflation Down
Speaking on the national economy, Lang predicted that U.S. gross domestic product would grow more slowly than in 2006 at a rate between 2.5 and 3 percent. He further predicted that inflation and core inflation would be near or below 2.5 percent by the end of 2007 and would trend lower in 2008. The unemployment rate, he said, would likely rise from its current level of approximately 4.5 percent to near 5 percent by the end of the year.
Lang cited several factors that will contribute to the economy’s growth in 2007: consumer spending – excluding automobiles – will grow with personal incomes; nonresidential building will continue to expand; business investment in equipment and software will continue to grow; state and federal government spending will grow due to continued infrastructure rebuilding, continued spending on the Iraq War, and anti-terrorism activities; and export growth will remain strong.
Factors that will detract from growth in 2007 include softness in the residential building market; generally flat auto sales; and import growth that will largely offset export growth.
Local Economy Highlights: Outlook Positive for Philadelphia Suburbs
Regarding the local economy, Lang said that although Philadelphia area manufacturing activity had been slow since September, other local economic signs were more positive. He noted that unemployment in the Philadelphia suburbs, which is below 4 percent, is lower than the national average and is among the lowest in Pennsylvania, with Montgomery County faring slightly better than Bucks County. Southeastern Pennsylvania’s population is growing faster than the rest of the state’s, too, with Chester, Berks and Lehigh counties among the leaders in population growth. Major contributors to eastern Pennsylvania’s growth include an influx of new residents from Maryland, New York, New Jersey and immigration from other countries.
“Although Pennsylvania’s overall population growth is one of the slowest in the nation, demographic trends in Philadelphia’s suburban counties have been more positive and will support continuing growth of the region’s economy,” said Lang.
Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania serves the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, and Montgomery counties through three principal subsidiaries. Univest National Bank and Trust Co. offers customers 34 financial service centers, 12 retirement financial services centers, and 41 ATM locations throughout the region, and is the parent company of Vanguard Leasing, Inc., a small ticket commercial leasing business. Univest Insurance, Inc., a full-service insurance agency headquartered in Lansdale, Pa., has two divisions in Chester County – Donald K. Martin & Company and B.G. Balmer & Co., Inc. Univest Investments, Inc. offers a wide range of investment and trust products and services.
For more information on Univest Corporation, please visit www.univest.net.
This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company's financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the company's filings with the Securities and Exchange Commission.