While looking at the overall economic situation of US economy, it seems like US economy lost its momentum by the end of 2015. Revised data confirms that the U.S. economy expanded at a seasonally adjusted annualized rate of 2.1% in Q3 2015. Steady gains in the labour market have pushed the unemployment rate to an over seven-year low of 5.0%. 

Consumer confidence as well as consumer spending has remained fairly robust throughout the year. A robust job market, rising income gains, solid household balance sheets, cheap gasoline prices and low borrowing costs are key drivers for the positive housing activity. In addition a gradual easing in lending conditions, low mortgage rates and strengthening household formation helped to boost residential constructions. 

Persistently low oil prices, sluggish export sales and weak global demand are weighing on manufacturing activity but on the other side Services activity has reported broad-based expansion across a range of industries like real estate, finance, utilities and retail trade. While looking at the exchange rate, strong US dollar has put pressure on the export activity.

Despite ongoing economic challenges, the economy is likely to grow at a steady rate and be one of the major drivers of global growth in 2016.