ver the course of 2018, the United States experienced a period of welcome economic growth. This growth brought increased profits to businesses and more employment opportunities to the population. But, as the saying goes, what goes up must come down, eventually.
It has been predicted that the United States will see its economic growth begin to slow in 2019, and thus far this is proving to be true. The S&P 500 is beginning to decline in response to reports that unemployment is rising and the global economy is slowing. Many economists are predicting this slowdown will continue, with some forecasting a global recession in the coming months.
Some of this instability comes from the ever-changing trade situation between the United States and China. In February 2019, exports from China to the United States dropped 26.2%, and Chinese imports from the United States fell 28.6%. These numbers could continue to drop as the two nations negotiate tariffs and trade agreements.
Another sign of a slowing economy is wage growth. After a period of increase, wage growth in the United States slowed to 1.3% in February 2019. Factors such as the recent government shutdown and a dismal December for the stock market may have contributed to this slowdown. Whether this is merely a bump in the road or a significant trend remains to be seen, but it’s worth keeping an eye on. This could compound the issues surrounding a tight labor force we’re observing in 2019.
Another sign of a slowing economy is wage growth. After a period of increase, wage growth in the United States slowed to 1.3% in February 2019. Factors such as the recent government shutdown and a dismal December for the stock market may have contributed to this slowdown.
With so much uncertainty on the horizon, how can your business prepare? Smart, strategic decision-making is key. Our Economic Trends Report takes a deeper look at the issues surrounding economic development 2019, and the information we’ve assembled will help you plan for the year with confidence.
If your plans for 2019 include optimizing your business, the team at Ginovus can help you navigate the decision-making process. With options including location modeling, we can assist your team in determining cost-efficient locations and options. With over 100 years of collective economic development expertise, we can help you execute a vision that meets your goals and maximizes your budget.
Interested in learning more? Get to know our team or contact us today.