U.S industry production in 2016 trailed 2015 levels by one percent, reports economic research and consulting firm ITR Economics in the January 2017 edition of its ITR Advisor. Despite the industrial production slowdown, improving conditions for the U.S. consumer have driven the economy forward.
Leading indicators point to the U.S. industrial economy growing through 2017, but of the three components that make up the indicator—manufacturing, mining and utilities—only manufacturing avoided a recession last year. ITR attributes the recessions in the mining and utilities sectors to a 2015 collapse in commodity prices. Commodities prices are improving this year, spurring an increase in mining production and, as energy has become more expensive, utilities production. ITR notes that for mining’s uptick to be sustainable, global economic activity must also increase.
As of December, the unemployment rate fell to 4.5 percent. Coupled with improving private sector employment, and rising wages and disposable income levels, consumers are more comfortable with spending. ITR reports that in November, personal savings as a percentage of disposable personal income was at its lowest rate since March 2015.
ITR offers economic information, insight, analysis and proactive strategies, and in collaboration with PPAI, the company produces data for the promotional products industry to help members improve their businesses. Its quarterly market outlook reports for the promotional product industry contain industry indicators, market analysis, advertising industry forecasts and a promotional products industry forecast. The quarterly Market Outlook Reports are available here.
ITR has produced a webinar to explain how to use the information within its reports. It looks at the methodology and terminology of information included in the report, the phases of the business cycle, how to use the information in the planning process, and provides examples of how to use this type of information within a business. The webinar is available on demand here.