As 2005 winds down, financial, retail and employment markets are looking forward to what the year ahead might hold. Will energy prices continue to soar? Will energy prices and a cooling housing market crimp consumer spending? Will the job market continue to gain steam? DePaul University College of Commerce professors are available to discuss these issues and more. Below is a summary of what the Chicago business school’s faculty experts in economics, finance, marketing, management and accountancy foresee for 2006:

Michael Miller, chairman of DePaul’s Economics Department: 312/362-8477 or mmiller@depaul.edu:

“The U.S. economy has revealed its underlying strength in 2005, with impressive gains in productivity and job creation sufficient to lower unemployment,” Miller said “This resilience has helped offset skyrocketing oil prices and damaging weather conditions. The New Year should see more of the same.

“Growth should remain near its potential of 3.5 percent increase in real Gross Domestic Product,” Miller predicted. “There will be a slight fall in unemployment to 4.8 percent, and with competence expected to continue at the Federal Reserve after the appointment of Ben Bernanke, inflation will remain in check. Growth could be even stronger if Europe and parts of Asia begin to grow after years of stagnation.

“Of course, there is one caveat that must concern all of us,” Miller warned. “Even the United States could be crippled if there is a flu pandemic that hampers production and spending in the short run. Though it would not likely push us into recession, it could result in growth and job creation slowing to near zero.

“But all in all, the United States will be the engine of growth for the world economy again,” according to Miller.

Miller may be reached for interviews at 312/362-8477 or mmiller@depaul.edu.

Ali Fatemi, chair of DePaul’s Finance Department: 312/362-8826 or afatemi@depaul.edu:

“With solid fundamentals in place, we should see the U.S. economy grow at a healthy rate in 2006,” Fatemi predicted. “With the new Federal Reserve chairman focusing on keeping inflation in check, inflation should continue to remain under control, albeit at a slightly higher rate than in the recent past. As long as this is achieved, interest rates should stabilize at levels not too much higher than their current levels.

“A stable interest rate environment, coupled with a healthy rate of economic growth would bode well for the stock market, which should regain its upward momentum and produce robust results in 2006,” Fatemi forecasted.

“Job growth in the finance field should be strong next year,” he said. “The combination of an aging population, a healthy economy and relative stability in financial markets would tend to encourage additional investments by households, boosting demand for financial services employment. Investment managers and analysts, financial counselors, consultants and, in general, those equipped to help the public in making better investment decisions should be in high demand for the foreseeable future.”

“The possible peaking out of the real estate market could further increase the popularity of hedge funds and other alternative investments, with the attendant expansion of job opportunities there,” Fatemi added.

Suzanne Fogel, chair of DePaul’s Marketing Department: 312/362-5150 or sfogel@depaul.edu:

“There are multiple factors that will influence consumer spending in the year ahead,” Fogel observed. “The impact of Hurricane Katrina will be felt both through increased energy prices and costs associated with repairing the devastation in the Gulf region. Following Katrina, consumer confidence was at its lowest point in 13 years and has yet to rebound.

“With the holiday season here, the retail forecast is uppermost in the minds of marketers,” Fogel said. “While the National Retail Federation is predicting moderate growth for the 2005 holiday season, a bright spot will be online purchases, expected to reach over $25 billion, according to Jupiter Research. Another trend likely to continue is growth among ‘upscale discounters,’ such as Target. Wal-Mart and Costco are now working to upgrade their images with improvements to the quality of fashion items and the in-store environment.”

“Finally, consumers need to be aware that many credit card companies are raising the percentage they require as a minimum payment from two percent to four percent,” she said. “In an ideal world, all credit card bills would be paid in full every month and this would not be an issue. However, for those who load up on debt this season, the bill may be a bit more than they expected in January.”

Scott Young, chair of DePaul’s Management Department: 312/362-8783 or syoung16@depaul.edu:

“There will be growing focus on sustainable development,” Young predicts, “defined by the World Commission on Environment and Development as ‘development that meets the needs of the present without compromising the ability of future generations to meet their need.’

“As energy prices reached all-time highs in 2005, the hybrid automobile was in such demand that the dealers could not keep them in inventory,” he said. “The current situation calls for renewed focus upon conservation of resources. We are all concerned with breathing clean air, drinking clean water and having adequate resources. But it has not been since President Carter asked us to lower our thermostats, that there has been any major national conservation effort. Until now.”

Ray Whittington, interim dean of DePaul’s College of Commerce and director of its School of Accountancy & Management Information Systems: 312/362-6625 or rwhittin@depaul.edu

“I foresee good news for graduates entering the accounting field,” he said. “The demand for auditors and accountants is far exceeding the supply. It’s a great time to be an accountant - now and for the foreseeable future. The Sarbanes-Oxley Act is the driver of this demand, with continued improvements in accounting controls and auditing being mandated by the new Public Company Accounting Oversight Board, which is now regulating audits and auditors of public companies.

“While financial fraud continues to make the headlines, there’s more scrutiny of fraudulent reporting than any time in United States history,” he observed.

“Trust is being restored, the accuracy and integrity of information is being improved—these are good for financial markets. Increasing the quality and credibility of financial information is good for firms, investors and the economy,” Whittington said.

About DePaul’s College of Commerce

Offering highly respected, practical, flexible programs of business study, DePaul’s College of Commerce enrolls nearly 6,000 students in undergraduate business programs and the Kellstadt Graduate School of Business in downtown Chicago. The college’s 200 full- and part-time faculty members represent a diverse blend of leading scholars and distinguished business professionals who bring real-world experience to the classroom. The graduate business school focuses on the educational needs of working professionals, offering a part-time MBA program that is consistently ranked among the top-10 in the nation by U.S. News & World Report.

Note to Editors: For assistance in reaching DePaul faculty for interviews, contact Robin Florzak, director of Media Relations, at 312/362-8592 (DePaul), 312/305-8592 (cell).