This summer the U.S. economic expansion enters its ninth year. It is now the second longest expansion post WWII, but also the weakest. Annualized gross domestic product (GDP) growth has averaged slightly under 2% over the past eight years. The expansion’s below-average growth rate actually has a lot to do with its longevity. Expansions usually end because of excesses, created by too much growth. Inflation, tight labor markets, accelerating wage growth, high inventories, misallocation of capital, and credit excesses are often the seeds of the next recession. With only 2% growth, it is difficult for the economy to create any excesses. Click here to read the Haverford 2017 Summer Outlook