Regarding the general economic outlook of the United States, the prospects are positive going into the latter half of 2016 and beyond. But there are some issues, such as the downward trend of the GDP growth that is around 1.7 percent. This is because of the weak GDP growth in the first quarter of the year, but better growth is expected in the coming quarters.
Another factor is the improvement in economic growth, which is showing in the lower unemployment levels. The housing market is also showing some growth after the stabilization over the past few quarters, which means people have more money that they are willing to spend in general. This means the prospects for consumer spending and the service industries is also looking good going into the third quarter of 2016.
One of the biggest issues for the United States in the rest of 2016 and going into 2017 is the weak investment growth. This is stagnating the GDP growth in the United States altogether, and it is also a reason why productivity is not growing at the levels people are expecting. Investors seem more cautious in general, even if the news would suggest money is being poured into different sectors. Most of the heavy investment is happening in the technology industries, but other parts of the economy are not experiencing the same level of investment.
What are the best sectors for the United States economy for the next quarter and beyond?
As has been the case for the past few years, the healthcare industry is continuing to grow in the United States. While you may read the news and think the healthcare industry is in crisis because of Obamacare and the furor surrounding that plan, the reality is that more people are getting older and they need healthcare.
Medical advancements mean that people will live longer than ever before in the United States, but this also means they will have more sickness and health issues in the latter years of their life. Baby boomers are a quarter of the United States population and they are getting older all the time! Everything related to healthcare from the facilities to equipment to drug manufacturing to biotech companies is experiencing this growth.
As we mentioned above, a lot of the investments being made in companies in the United States is focused on the technology industry. Whether we are talking about gaming, virtual reality, social media or other technology companies, they are all seeing record growth and rising values. More investors want to put their money in tech because they see these companies as a “safe” bet in the coming years.
Consumer technology is one of the most profitable sectors in the United States, while technology services are not far behind. With mobile technology growing more each year, and Google Fiber gaining traction in different parts of the country, no one is expecting a tech slowdown any time soon. While all bubbles must burst eventually, the latest tech bubble seems to be getting warmed up right now.
It is interesting to note that while investing in the United States is not at the level economic experts would like; the financial sector is still doing very well for themselves. Banks, insurance companies and brokerage firms are seeing record profits. Interest rates are set to increase, which will help this sector even further in the third and fourth quarters of 2016.