The U.S. economic outlook for 2016 is encouraging. Overall, we’re looking at:
- A healthy Gross Domestic Product in the 2-3% range,
- A low unemployment rate at between 4-6%,
- Inflation will remain under control, and
- Interest rates can be expected to slowly grow through 2016.
We want to take a look at specific outlooks for key industries including: energy, manufacturing, housing, and healthcare.
- Energy Production: Like the previous two years, 2016’s US economy will get a big shot-in-the-arm from U.S. shale oil production, which has reduced oil prices 25% in the last few years. In turn, lower oil prices means lower cost of transportation, food and raw materials for business, thus raising profit margins and giving consumers more disposable income to spend, which also spurs the economy.
- Manufacturing: US manufacturing is expected to increase faster than the general economy and grow by approximately 2.6%.
- Housing: As housing recovers, construction will add 1.8 million jobs.
- Healthcare: Even with the Affordable Health Care Act under attack at every turn, it is no surprise that 2016 will be a banner year for healthcare. As our population ages, healthcare will continue to become more important to our economy for another 20-30 years.
More forecasts for 2016 include:
- The Stock Market Predicted to Set New Highs
- The Housing Market Will Strengthen
- The Fed Will Gradually Raise the Fed Funds Rate
- Gas Prices Will Creep Up a Bit in the Spring
- The Strong Dollar May Reverse Course
Even though 2016 looks pretty upbeat, there’s still quite a bit of uncertainty. If you want your company to weather the economic uncertainties of the year and ensure that you have secure funding in place, learn more about Universal Funding’s invoice factoring services by giving us a call at 800-405-6035 to request a rate quote.