The
Gross Domestic Product is one way of looking at the economy. It includes
consumer spending, what companies invest in new equipment and buildings,
changes in business and farm inventories, exports and imports, and government
spending. In the news we usually hear how much it’s changed from quarter to
quarter, which varies a lot. But if we look at the change from the same quarter
of the previous year it’s easier to spot trends.
Seen
that way, GDP has been steadily growing for the past two years, particularly
because of more spending on healthcare. It doesn’t match the surge of
healthcare spending when the Affordable Care Act was enacted, but points to the
fact that healthcare spending – and the jobs it creates - will be driving local
economies for quite some time.
In
October, total jobs were up 1.7 percent from last year. Jobs were up 1.4
percent in finance, 2.6 percent in business services, 2.1 percent in
healthcare, and 1.6 percent at restaurants. Government jobs barely increased,
as did jobs in retail. With more and more on-line shopping, we have to accept
that the low job growth in retail is now a permanent feature of the economy.
Job
gains in manufacturing were 2.3 percent, continuing the trend of the past year.
This may be a temporary response to international trade disputes, but it could
also signal that highly-automated US factories have regained the edge in making
good-quality products at a reasonable cost.
