The end of 2019 saw a strong economic market. According to the Commerce Department, household spending increased for long-lasting factory goods, which are good signs of economic growth. The fourth quarter saw an increase in the GDP from 2.1% on Dec. 20 to 2.3% on Dec. 23. A report from the U.S. Census Bureau shows that private domestic investment growth increased from -0.9% to -0.1%, and these are signs of a positive economic forecast.
The Federal Reserve was expecting a fourth-quarter flatline or decrease and was surprised to see the growth. The U.S.-China tariffs, as well as a slowing global economy, raised fears of sluggish growth. While still being cautious, the Federal Reserve has given the U.S. economy a favorable grade.
Manufacturing is in recovery and will help to boost the economy in 2020, especially after the General Motors strike ended. However, forecasters are predicting a softening of economic growth for 2020 as it’s an election year, the trade deficit continues, and decrease in global economics continues. A resolution of the U.S.-China trade war would help to boost business spending and create a positive outlook for consumers.
Keep a watch for the first and second quarter of 2020 to see if the economy grows, recedes, or remains the same.
Source: WSJ
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