This year hasn’t gotten off to the best start in terms of the economy. GDP has risen by less than one percent, and the April Jobs Report showed lackluster results.
New U.S. Government data, however, suggests indicators that the current economy could flip the script. Here are some of those indicators:
- In April, retail sales increased by 1.4 percent from March, and 2.7 percent from April of 2015.
- Overall industrial output doubled the expectations of experts. This gain in output was the strongest in over a year.
- Manufacturing and factory output increased as well. This means that other countries are likely buying more exports from the United States.
- Seasonally-adjusted homebuilding rates increased by 6.6 percent, which was higher than analysts predicted
These statistics seem to signal a promising remainder of the year. Wages and jobs both seem to aiming upwards, which is obviously good for everyone, particularly those who have struggled to find stable and consistent employment.
It is believed that the sub-one percent GDP will increase for the second half of 2016, while the economy will continue to perform well for the foreseeable future.
An interesting point to note is that the state of the economy can affect how people will vote in the November election.
Past precedent has shown that if the economy is strong in the six months prior to the election, the incumbent party in the White House wins— in 2016, this would be the Democrats. Conversely, if the economy fares poorly, the other party— in this case, Republicans— generally wins.