Gift and Novelty Economics Forecast :: essays research papers

Economic ForecastsThe retail consumer marketplace must take into consideration many indicator forecasts that help estimate what the stinting market allow for be like for the future. The following information contains two or more forecasts based on our teams six pre-selected indicators. This team go out provide propitiation between both forecasts and will apply economic theory in deciding which one may be the most relevant to the gift and cheekiness industry.gross domestic productInformation retrieved from the Economist Intelligence Unit selective information Services (2005), the GDP (in billions) is expected to be 13034.5 in 2006 and 13766.2 in 2007. However, according to the data retrieved from the macabre Chip economic indicator, the forecasted GDP (in billions) is 12907 for 2006 and 13617 in 2007 (The White House, 2005).Foreign investment is a factor that is increasing the overall GDP. Over a period of clock time this will eventually bring higher gross domestic investments , resulting in more productive physical capital in the U.S economy. The additional capital will make labor more productive, which provides an increase in GDP and wages. Based on this information, it is thought that the EIU forecast is more correct than the Blue Chip indicator.UnemploymentUnemployment is another(prenominal) area that can affect this industry. Data retrieved from the Economist Intelligence Unit (EIU) projects that the unemployment rate in 2006 will be at 5% (Economist Intelligence Unit, 2005). Data derived from the Blue Chip consensus indicator, however, projects the unemployment rate for 2006 will be at 5.2% (The White House, 2005).By taking into consideration many outside indicators, such as the GDPthat show a slow but constant growth, will allow private investment to remain constant. This will encourage private industry to contain their employment at a constant level. In understanding what this nation faces in the near future, this team recognizes that many of the Baby Boomers will retire, which reinforces the premise that unemployment will eventually stay at or fall below 5 %. Housing StartsHousing starts seems to be one of the most visible in regards to economic growth. Based on the analytical tables provided by National Association of Home Builders (NAHB) and Steele Analytics, 2005 and 2006, housing starts will decline slightly. NAHB shows that 2005 housing starts (in thousands) at 1,969 decreasing in 2006 to 1,855 (NAHB, 2005). Steele Analytics excessively shows housing starts (in thousands) for 2005 start at 1,883 with a slight decrease in 2006 to 1,825 (Steele Analytics, 2005).It