US Market Trends
Overall, the U.S. economy is healthy as of the first quarter of 2018, and confidence levels are high among both consumers and business leaders. As requested, I've identified high-level market trends for the U.S. market, as well as for the healthcare, utilities, banking, and M&A sectors specifically. You'll find all of the details in the first slide of the attached presentation, and you'll also find a summary of my research below.
According to the Federal Open Market Committee, U.S. GDP growth will increase to 2.7% in 2018. The unemployment rate will drop to 3.8%. Inflation will be at 1.9%. The new tax reform bill from the Trump administration went into effect this quarter, and it's unclear yet how this will affect the economy overall. However, both consumers and business leaders are more optimistic about the economy than they have been in years.
The U.S. banking industry is expected to make a comeback as interest rates rise, taxes lower, and regulations ease.
Growth in the housing market is positive for the utilities sector. However, accelerating economic growth makes the defensive utilities sector less attractive.
The Tax Cuts and Jobs Act eliminates the ACA’s individual mandate penalty, and lowers the threshold for the medical expense tax deduction. Both of these changes could affect healthcare spending.
Industry leaders report that acquiring technology assets is the top driver of M&A activity. 97% of industry experts predict deal sizes will hold steady or increase in the coming year.
To wrap up, the U.S. economy is healthy as of the first quarter of 2018, and confidence levels are high among both consumers and business leaders.
You'll find all of the details in the first slide of the attached presentation.