As the new decade commences, the United States economy is solid thanks to new job creation, low interest rates (thank you Fed) and strong demand from the consumer. (Low unemployment translates to more dollars in the pockets of consumers yielding more robust purchasing power.) The recent holiday season sales were positive overall. Residential construction is improving. Demographics are changing and politics (unfortunately) will take center stage in 2020.
The changing demographics: The Boomers are continuing to enter the retirement world. As a group that fueled the rise of consumerism, the numbers are still great. Estimates are that over 70 million Boomers are retired or getting very close to retirement. That alone changes the income of many households. The Millennials, a rapidly growing segment of the U.S. population, have, on the surface, a different outlook of being more urban, less of a consumer, more into experience buying and certainly more digital. These two ends of the demographic spectrum, Boomers and Millennials, will find 2020 to be a conflicting year – think politics. However, the business world is forecast to keep moving ahead.