People in the United States are starting to become hopeful about the economy again despite challenges brought by inflation. The US Department of the Treasury has reported that the nation’s economy has even gone over 5% above its 2019 level. Despite the presence of inflation, it has also been comparatively more manageable than in other advanced economies.
The economic turmoil being felt worldwide also hasn’t been a distraction for other achievements and pursuits for the country. Just recently, Florida sprinter Noah Lyles won gold for the United States in the 2023 World Athletics Championships with a remarkable personal best. Additionally, there has been a marked increase in solar power adoption in the country with 54% of all new installations being solar.
Still, this begs the question of whether or not this just means the economy looks better by pure comparison. When looking at all the factors in play now, you can get a clearer picture of how the US economy is doing.
Challenges to Watch
Before looking at the potential avenues for success, it’s important to look at the challenges that may pose significant roadblocks to recovery. For starters, there is still the matter of dealing with inflation and its impact on those with lower socio-economic status. After all, interest rates are still at a 22-year high. The Federal Reserve is also undergoing its fastest interest rate hike in recent memory.
Despite continued efforts to bounce back that will see some reward, the road will likely still see its fair share of ups and downs. The labor market remains tight, with a 3.5% unemployment rate. Though this can see some expected improvements over the remaining months of the year, it’s still going to depend on quit rates and hiring resources. Employers boosting pay will be the clincher to continued improvement.
This will likely be alleviated by the hiring crunch being started by the public sector. Minnesota is one of the states leading this charge, though there is still a stark need for social workers, plumbers, and groundskeepers that are proving difficult to find.
Finally, states will have to take care on their disaster preparedness to ensure that any potential natural issues don’t devastate the economy. As Hurricane Hilary approaches the country, San Diego has already canceled over 250 flights. Meteorologists are also urging for care toward potential flooding that could hit catastrophic heights.
A Continued Rise in Business and Innovation
Thankfully, the US is still far off from a recession. Efforts from both the private and public sectors have stifled this threat adequately, especially as we see a continued rise in business. Unions continue to work hard at recruitment to create more jobs and stimulate local divisions of the economy. This will ensure that unemployment levels won’t go above 5%.
Additionally, the supply chain problems that started to plague the country since the pandemic are finally being laid to rest. Although things aren’t quite at pre-pandemic levels, the recovery in this department is still continuous and expected to rise over the next quarter. This will sort out some of the pressures that are causing inflation to remain elevated.
New business is also seeing promising staying rates, with new business applications hitting 1.31 million in the first quarter of 2023 alone. While 73% of all businesses continue to be sole proprietorships, there is also a marked increase in limited liability companies (LLCs) in response to risk mitigation.
In CNBC’s ranking of the top states for business in 2023, North Carolina, Virginia, and Tennessee secured the top spots overall. When breaking down how to find the best registered agent in North Carolina, we can see this success in the cost-effectiveness and accessibility of filing for new businesses. There is a rich workforce in the state catering to the nationwide need for agents to represent businesses. The state also ranks highly due to its tech and innovation, making way for new businesses to accomplish all their filing and registration online without much risk. As such, their economy also remains one of the most promising in the country.
The top-ranking state for the economy is actually Florida, though it drops slightly below the top five in terms of business because of its continued lag in life, health, and inclusion. Texas stands out as the new forefront for tech, overtaking California because of its more relaxed regulations and lower housing costs.
Consumer Behavior
Finally, the economy is also seeing promising returns thanks to consumer behavior remaining relatively positive considering the hurdles being felt throughout the nation. While 2022 saw families recovering from the onslaught of the pandemic and depleted savings, 2023 is seeing a slow but steady return to spending confidence.
It’s important to note that Americans are definitely becoming more strategic with their spending. Affordable options and discounts are the top priority as high interest rates and prices threaten a slowdown. Still, there has been a 7.4% year-over-year increase as consumers turn to e-commerce and continue spending on food and wellness.
Overall, the US economy can still see a return to form in the future. Although it’s going to see many more obstacles, government planning and efforts to increase wages will be key to ensuring a continued uptick in the future.
