Jan
28
Ask an Economist: Home Improvement’s 2020 Outlook
In 2019, real GDP slowed from 3.1% in the first quarter to 1.9% at the end of Q3. Consumer spending is leading the United States expansion, supported by gains in employment, real wages and household wealth. Economic expansion is expected to continue through 2020, but clear negative forces have the potential to dampen this growth.
Positive forces
- Employment growth
- Real wage gains
- Rising household net worth
- Low-interest rates
Negative forces
- High student debt burdens
- Auto sales correction
- Import tariffs
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How has this outlook changed given recent developments? Given that the likelihood of 'economic expansion continuing in 2020' is increasingly unlikely, what will the likely impact on the home improvement market be? Which segments (Pro vs DIY, discretionary vs emergency, etc.) will be hit the hardest?