Date of this Version
Business in Nebraska, Volume 69, No. 713, June 2015
The U.S. economy has been impacted in early 2015 by two significant shocks: 1) a sharp increase in the value of the U.S. dollar and 2) a drop in new development in the oil and gas industry, which has led to a drop in mining and related employment. These shocks have restricted economic growth in early 2015, in spite of the ongoing, self-sustaining U.S. economic recovery.
This economic recovery, however, will ultimately absorb these shocks and continue, gaining pace in the second half of 2015. The recovery is fueled by steadily improving consumer spending, business investment and housing activity. The decline in gasoline prices over the last year is one factor which will support faster growth in consumer spending. The recovery also should benefit from stabilization in the value of the U.S. dollar, after a significant increase in late 2014 and early 2015. Modest improvement in the European economy, particularly in Germany and other northern European countries, also should support the reacceleration of the U.S. economy. Finally, economic growth may be aided in 2016, the next Presidential election year, due to growth in federal government spending.