Onyx Power and Gas Consulting continues a weekly series providing the Short Term Energy Outlook as of August 8th 2016. This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.
U.S. Economic Assumptions
Recent Economic Indicators
The Bureau of Economic Analysis reported that real gross domestic product (GDP) increased at an annual rate of 0.5% in the first quarter of 2016, down from an estimated 1.4% in the fourth quarter of 2015. The slowing growth in real GDP in the first quarter mainly reflects a decline in nonresidential fixed investment, slower growth in personal consumption expenditures, and lower spending by the federal government.
EIA used the April version of the IHS macroeconomic model with EIA’s energy price forecasts as model inputs to develop the economic projections in the STEO.
Production, Income, and Employment
Forecast real GDP growth is 2.0% in 2016, below the 2.1% forecast in last month’s STEO, and 2.9% in 2017. Forecast real disposable income grows by 2.7% in 2016 and by 3.3% in 2017. Total industrial production falls by 1.3% in 2016, and then rises by 3.3% in 2017. Projected growth in nonfarm employment averages 1.8% in 2016 and 1.5% in 2017.
Forecast private real fixed investment growth averages 1.9% and 5.2% in 2016 and 2017, respectively. Real consumption expenditures grow faster than real GDP at 2.8% in 2016 and 2.6% in 2017. Export growth is 0.9% and 3.1% over the same two years, while import growth is 1.3% in 2016 and 4.6% in 2017. Total government expenditures rise by 1.2% in 2016 and by 1.1% in 2017.
The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!