Issue link: http://palletcentral.uberflip.com/i/522141
palletcentral.com PalletCentral • May-June 2015 21 Economic Growth Should Rebound to 4% or Higher Now let's focus on the good news. Although the employment growth was a bit below expectations last month, other reports on the job market are very bullish. One report that does not get a great deal of attention is the Job Openings report. The number of open/unfilled jobs grew to 5.1 million—the highest level since 2001! With unemployment below 5%, consumers are feeling confident. Borrowing rates picked up last month to buy autos and durables. Another kick for the consumer this year should be wage growth. Despite unemployment falling to 5.5%, wage growth has remained very modest near 2%. The recent survey of small business shows firms planning more wage increases this year. Further declines in unemployment this year will definitely translate into higher wage gains—perhaps as strong as 3% next year. Finally, oil prices should remain near current levels through 2015, keeping inflation below 2%. Housing starts are also set to improve as well. New home sales were strong in February despite the weather. With vacancy rates down for rental units and some easing in lending standards, housing starts should move towards 1.3 million by the end of the year. Finally, overall business investment should gain momentum this year as well. With business balance sheets strong and operating rates rising, investment improvements in industry other than energy should be strong.