Q2 2017 has a tough task in hand, if estimate about the upcoming 2017 Q1 reports are anything to go by. A string of economic growth reports releasing this week will provide a close look at the dynamics of the economy in 2017. Closer estimates regarding consumer and business spending, the two key pillars of the American economy, are likely to be derived from the reports, which will also provide government estimations about the slow economic growth in Q1 2017.
Demand for Long-lasting Durable Goods Soars
One of the key features of Q1 2017 is the sustained demand for long-lasting durable goods such as cars and computers, as well as aircraft. Steady growth of the consumer demographic for the automotive industry in recent years and the launch of popular new models has contributed to the steady demand for cars, while the booming space exploration and aviation sector has made steady growth of the aerospace sector likely in the coming years. The corporate sector’s consistent demand for computers is also likely to remain unchanged in Q2. The strong growth of the energy sector has also buoyed the demand for aircraft and cars, but the recent drop in the energy sector could also have an adverse economic effect in Q2 2017.
Consumer Confidence Growing, Services Likely to Trump Consumer Goods
Despite a slight drop at the end, consumer confidence remains close to the zenith achieved in March, when consumer confidence reached a 16-year high. Steady income growth and job stability has been crucial in this, as a rising demographic of consumers are wary about President Trump’s ability to deliver on its campaign promises through an unsupportive Congress. Though electronics and appliance sales have scope to rise in the coming months, services will likely remain a dominant factor for the economic growth in the coming months.