Watch for Smooth Sailing and Rough Waters in Key Industries
Expect rough waters in these three industries
1. Retail
The availability of on line stores augmented by traffic delays in many metropolitan areas has impacted retail sales which show a downward trend, and is it projected that this trend will continue. Good retailers are finding creative ways to attract shoppers to their locations.
2. The Fashion Industry
The possibility of tariffs or import duties being imposed on products from other countries will have an effect on sales for the short term. It is difficult to project the long term outcome when there are so many changes that may or possibly may not occur in international trade. Uncertainties are never good for a market.
3. Real Estate
Real estate sales, both residential and commercial will be negatively affected if there is a slow-down in tourist traffic. In 2016, 22% of residential properties in the U.S. were sold to foreigners.
Many of the trade articles recently published forecast fewer tourists in the coming year. The H-1B program has been instrumental in fostering real estate sales. This program which allows individuals to invest in the U. S. dream and thereby access a pathway towards citizenship has an uncertain future.
Small Businesses are being negatively impacted by an overheated commercial market that has increased the leasing costs in areas with strong market demand.
The businesses seek stability but they cannot always afford the increase in pass thru expenses that are included in the small print of the leases.
A slowdown in the real estate market indirectly affects many other industries such as travel related business and the marine industry.
Bank lending policies always take into consideration the strengths and weaknesses of each industry and therefore changes in their receptivity to lending to certain industries in anticipated.
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