2019 US Spa Industry Study 2019 US Spa Industry Study | Page 9

The Economic Context
Across a range of indicators, the U.S. registered strong growth in 2018, at a pace that has
carried through to 2019.
As measured by the Gross Domestic Product (GDP), in 2018 the U.S. economy grew at 2.9%,
up from 2.4% in 2017. The economy has now recorded positive GDP growth for nine years in a
row. The pace of growth remained solid through the first quarter of 2019 (+3.1%), albeit ticking
down to 2.1% in the second quarter.
Employment continued on an upward trajectory, rising by 1.7% in 2018. New jobs continued to
be added in the first two quarters of 2019, at an annualised rate of 1.6% in the first quarter and
1.7% in the second quarter. With labor demand remaining on an upward path, the
unemployment rate continued to tick downwards, falling below 4% in 2018. By mid-2019, the
unemployment rate had dropped to 3.7%.
Spurred by growth in the number of jobs, compensation of employees rose by 5% in cash terms
in 2018. Personal consumption expenditure on services has also been growing, up 2.5% in
2018 in real terms (after adjusting for inflation) and 5.3% in cash terms. The trend in
consumption expenditure has been more mixed in the first two quarters of 2019.
Inflation picked up slightly in 2018, with the Consumer Price Index up by 2.4% compared to a
rise of 2.1% in 2017. Through the first half of 2019, however, price inflation has dropped back
below 2%.
The U.S. economy:
Selected indicators, annual percent change
2017 2018 2019(Q1) 2019(Q2)
GDP (Constant 2009 $) 2.4% 2.9% 3.1% 2.1%
Employment 1.6% 1.7% 1.6% 1.7%
Unemployment 4.4% 3.9% 3.8% 3.7%
4.5% 5.0% 9.2% 4.7%
Compensation of Employees
Current $
Personal Consumption Expenditure *
All services
Current $ 4.5% 5.3% 2.3% 5.3%
Constant (2009) $ 2.0% 2.5% 1.0% 2.5%
2.1% 2.4% 1.9% 1.6%
Consumer Price Index
All items
Sources: Bureau of Economic Analysis (BEA); Bureau of Labor Statistics.
*Personal consumption expenditure is a measure of how much consumers spend on durable goods, consumer
products, and services. The figures shown above relate to spending on services.
GDP, income and expenditure data extracted from revised estimates published by BEA in July 2019. Rates shown
in constant (2009) $ are adjusted for inflation.
Industry Size:
Spa Services
Spa Industry
Introduction
Technical Appendix
Performing Strongly
and Facilities
Profile
Page 8