Hardwood Floors February/March 2025

INDUSTRY INSIGHTS

MARKET MATTERS

UNCERTAINTY Regarding Incoming Policies The U.S. economy generally is performing well, with gross domestic product (GDP) growth in Q3/2024 at 2.8 percent over the same period in 2023. Consumer spending and real disposable personal income both are growing at acceptable levels. But looking past these figures, we find a more ominous situation.

Much of the spending and income growth is occurring among upper-income, skilled households. Inflation is not a factor for approximately a third of the population these households represent, and they are little impeded by rising prices and high interest rates. The rest of the households are being squeezed by rising costs for necessities, forced to endure personal budget constraints, and to prioritize spending. A huge uncertainty regarding the U.S. economy is to what extent and impact the Trump policies will have. This forecast is based on the assumption that the Trump Administration will be more aggressive and business oriented in their approach. However, the degree and scope of the actual policies to be implemented remain a mystery in their details.

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