Economics & Demographics • Section 3 ride at the nation’s capital. D
Unemployment and inflation remained low, virtually ig- noring the Federal Reserve Bank’s two rate increases during the first six months of the year.
The gross domestic product increased at a three percent
annualized rate in the second quarter, the fastest in more than two years, and the economy got off to a strong start in the third quarter.
Many experts predict self-storage will see rising occupancies and rental rates as these communities
rebuild and look to store possessions and equipment throughout 2018.
Corporate profit growth in the first half of the year was
the best since 2011, and the Dow Jones industrial average reached numerous record highs, achieving the 23,000 mark by mid-October. Some Wall Street analysts optimistically pre- dict the Dow at 25,000 by mid-2018, barring a catastrophe.
But the fingerprints of Hurricane Harvey and Hurricane
Irma were all over the economic landscape as the U.S. en- tered the fourth quarter of 2017. While most of the country enjoyed relative prosperity, cities in the southern U.S. were hit by damaging hurricanes and wildfires devastated the wine country of Northern California. These acts of Mother Nature will have long-term effects on three of the nation’s most populous states: California, Texas, and Florida.
espite the nearly daily turmoil in Washington, D.C., throughout 2017, the U.S. economy moved along at a steady performance that contrasted the roller coaster
Many experts predict self-storage will see rising occupan- cies and rental rates as these communities rebuild and look to store possessions and equipment throughout 2018. That would be welcomed news for the industry that witnessed fall- ing occupancies and prices throughout much of the country.
Hurricanes Damage Jobs Picture Hurricanes Harvey and Irma damaged not only Texas and Florida but also the U.S. jobs picture, as payrolls fell by 33,000 in September. That drop came even as the unemployment rate fell to a 16-year low of 4.2 percent, the Bureau of Labor Statistics reported.
Hurricane Irma made landfall in Florida on September
10, causing severe damage in Florida and other parts of the Southeast. Hurricane Harvey struck Texas on August 25, re- sulting in severe damage in Texas and other areas of the Gulf Coast.
The jobs loss was the first monthly decline in seven years, when the economy was still pulling out of the Great Reces- sion. In the 12 months before September, the U.S. economy added an average of 172,000 jobs per month. It’s interest- ing to note that employment rose in the transportation and warehousing category, which includes storage (5,000-plus jobs over August).
Job creation for 2017 appeared headed for just over two
million, compared to 2.2 million jobs created in 2016 and 2.7 million in 2015.
Meanwhile, hourly wages jumped higher, to an annual-
ized rate of 2.9 percent. This is a positive sign since it gives consumers more disposable income to spend on items like storage.
The consumer continues to do the heavy lifting when it
comes to economic growth. Consumer spending was cred- ited with boosting growth in the second quarter.
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
4.8
4.9 5.7 6.6 7.9 8.3 9.0 9.7 7.6 4.9
* Data not available
4.7
4.9 5.5 6.7 7.7 8.3 8.9 9.7 8.1 4.8
4.5 5.0 5.5 6.7 7.5 8.2 8.8 9.7 8.5 5.1
4.4 5.0 5.4 6.3 7.5 8.1 9.0 9.9 8.9 5.0
4.3 4.7 5.5 6.3 7.5 8.2 9.1 9.7 9.4 5.5
4.4 4.9 5.3 6.1 7.5 8.2 9.2 9.5 9.5 5.6
4.3 4.9 5.3 6.2 7.3 8.2 9.1 9.5 9.4 5.8
4.4 4.9 5.1 6.1 7.2 8.1 9.1 9.6 9.7 6.2
5.0 5.1 5.9 7.2 7.8 9.1 9.6 9.8 6.2
4.2
*
4.9 5.0 5.8 7.2 7.9 9.0 9.6
10.2 6.6
*
* 4.6
5.0 5.8 7.0 7.8 8.6 9.8
10.0 6.8
2018 Self-Storage Almanac 4.7
5.0 5.6 6.7 7.8 8.5 9.4
10.0 7.2
Source: Bureau of Labor Statistics 45
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