Investment Increase

One key component of GDP is corporate investment in equipment and 2018 should be good. The combination of tax cuts, improved business confidence, strengthening global demand, high enough oil prices, a weaker US dollar, very low unemployment, and concomitantly rising worker wages, all point to strong growth. Corporate investment in plant should be close to 7.0% in 2018, up from 4.8% last year and -3.4% in 2016.