Issue link: http://palletcentral.uberflip.com/i/801657
palletcentral.com PalletCentral • January-February 2017 23 Unfortunately, a key driver for pallet demand did not do that well. The growth in industrial production was near zero in 2016. Although the stronger U.S. dollar kept inflation rates low, the ability to import manufactured goods at cheaper prices continued to hurt U.S. manufacturing. Exports were also lower because the stronger dollar means higher prices in offshore markets for U.S. produced goods. Initial Pass at Growth in 2017 and 2018: Looks Good Right now the economy appears to be positioned for better growth in 2017. Consumer spending should continue to do well. First, employment growth and improving wages will boost consumer spending. The improving net worth of the average household should also make them more confident as well. Housing is the primary asset for an average household. Because of rising house prices, the household net worth in housing has rebounded and now is back to 2005 levels. Policy actions by the Trump Administration should boost growth as well. First, they clearly want to cut taxes and regulations for business. In the latest survey of small businesses, their confidence in the future shot up. This will translate into higher investment spending. Second, Trump promised to rebuild our infrastructure such as roads and bridges. This will boost government expenditures. Finally, housing starts should keep moving higher as mentioned earlier. First, employment growth has revived household formation growth and should continue to do so over the next few years.