ECONOMY: CONSTRUCTION AND MANUFACTURING

Recent articles show that construction and manufacturing may blossom during the upcoming year  if all the skilled labor can be found.  Below are summaries of two such published articles.  You are encouraged to read the two citations in their entirety.

CONSTRUCTION*

For all of 2017, construction added 210,000 jobs, a 35 percent increase over 2016.

Construction spending is also soaring, rising more than expected in November to a record $1.257 trillion, according to the Commerce Department. That was up 2.4 percent annually. Spending increased across all sectors of real estate, commercial and residential, with particular strength in private construction projects. The only weakness was in government construction spending.*
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Contractors are most optimistic about construction in the office market, which has seen little action since the recession. Transportation, retail, warehouse and lodging were also strong in the survey. Respondents were less encouraged by the multifamily apartment sector, which is just coming off a building boom.*

The biggest concern for the industry is the severe shortage of labor. This is slowing what could be a far more robust recovery in the residential housing market, which desperately needs more homes.* 
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"There needs to be serious consideration in allowing temporary work visas until American trade schools can adequately crank out much needed, domestic skilled construction workers," NAR chief economist Lawrence Yun wrote in response to the monthly employment report.*

MANUFACTURING**

According to the Bureau of Labor Statistics, an average of about 171,000 jobs were added per month in 2017 While that's a drop from the average of 186,000 jobs added per month in 2016, the last year of Barack Obama's presidency, average unemployment stood at 4.1 percent in December, and it's much lower in pockets of the country.**
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The top five sectors since the election in terms of the number of jobs added are professional and business services; education and health; leisure and hospitality; construction; and manufacturing.** 
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Economists credit Trump's push for deregulation and the recent victory in overhauling the tax code, both of which sent the stock market and business confidence soaring, for spurring job creation. A rebound in oil prices, a weaker dollar and stronger global economic growth also served as main drivers in job growth.

That the average employment rise is  somewhat lower in 2017 than 2016 is to be expected  as full employment continues to be approached.

Also worthy of mention is that the global economy is soaring which is also good for the U.S. corporations and therefore the economy and the stock markets.

No legislation or executive orders have passed or been made to stop this roaring economy although the recent tax cut is like pouring gasoline on a fire.***  (Yes, I know, Republicans say they want to get the economy going again.)  The ultimate effect of the tax cut on the economy, positive or negative, is yet to be experienced.

* https://www.cnbc.com/2018/01/05/by-all-measures-a-construction-boom-is-shaping-up-for-2018.html
** https://www.cnbc.com/2018/01/05/low-unemployment-means-finding-skilled-labor-can-be-challenging.html
*** http://stopcontinentaldrift.blogspot.com/search?q=pouring+gasoline+on+a+fire