RV PRO

January '19

Issue link: https://nbm.uberflip.com/i/1063031

Contents of this Issue

Navigation

Page 174 of 187

rv-pro.com January 2019 • RV PRO • 165 base of consumer confidence, always an important driver for the economy. "Consumers seem to be euphoric right now," Hoyt says. "The fiscal stimulus in the form of tax cuts, as well as the tight job market, mean there are very few negatives when it comes to consumer fundamen- tals. The fact that consumer confidence is near historic highs makes sense given the current conditions of low unemployment and the gradual increase in wages – even though wage growth is still not high." Wages Rise There's no doubt that consumer confi- dence is rising in response to a happier jobs picture, one that should only brighten in the months ahead. Moody's expects unem- ployment to drop to 3.4 percent by the end of 2019, down from the 3.7 percent recorded at the end of 2018. (Moody's Analytics first declared that the economy had reached the state of what is often called "full employment" with its 4.1 percent showing in 2017). "The fundamentals of the labor market look good, at least into the mid-year of 2019 and probably longer," Hoyt says. "The nation is adding jobs faster than the growth in the wage-earning generation, so we expect a further tightening of the labor market in 2019." And it seems that healthy job growth is finally affecting wages. Average hourly earnings are expected to grow by 3.2 per- cent in 2019, up from the 2.8 percent of 2018 and the 2.6 percent of 2017, according to Moody's. "The recent rise in wages is very good for the economy," says John Manzella, a consultant on economics and global busi- ness, Buffalo, N.Y. "The more disposable money consumers have, the more they spend, and consumer spending represents 70 percent of the nation's economy." Hoyt says the increase in take home pay seems to be a more important consideration for people than any negative economic news. "Consumers do not seem to be worried about the effects of a possible trade war, or gridlock in Washington, or the rise in gasoline prices that has taken place over the past year," he says. BOOST YOUR CUSTOMER'S DRIVING EXPERIENCE BOOST YOUR CUSTOMER'S DRIVING EXPERIENCE s u p e r s p r i n g s . co m /r v- p r o SHOCK ABSORPTION Superior damping properties SWAY CONTROL Reduce sway by up to % LOAD SUPPORT Progressive spring rate helps level varying loads MAINTENANCE€FREE Fit it and forget it INSTALLS QUICKLY AND EASILY INCREASES YOUR REVENUE

Articles in this issue

Links on this page

view archives of RV PRO - January '19