Analysis of the Macroeconomic Environment Within the Health-Care and Automobile Industries

2470 Words Mar 6th, 2012 10 Pages
Analysis of the Macroeconomic Environment within the Health-Care and Automobile Industries

Abstract
This report discusses macroeconomic factors that impact both the automotive and health-care industries. Interest rates, consumer price index (CPI), consumer confidence, Gross Domestic Product (GDP), wage rates, and inventory levels impact the macroeconomic environment to influence these industries in the short run. Consumption as a percentage of the GDP depicted in table 1 indicates a continuous declined in consumer spending from 2005 through 2010 and suggests that consumers are becoming more conservative with disposable income spent on elective health-care products and procedures as-well-as new vehicle purchases. As the nominal interest
…show more content…
Analysis of the Macroeconomic Environment within the Health-Care and Automobile Industries
The health-care and automobile industries are affected by a host of economic factors. This report addresses the macroeconomic economic indicators that impact both industries. Factors such as interest rates, consumer price index (CPI), consumer confidence, Gross Domestic Product (GDP), wage rates, and inventory levels impact the macroeconomic environment to influence these industries.
We first address GDP and the impact upon both industries by examining the real GDP for the years 2005 through 2010. The consumption as a percentage of the GDP depicted in table 1 indicates a continuous declined in consumer spending from 2005 through 2010. This trend indicates consumers are more conservative with disposable income and suggests that elective health-care procedures and new vehicle purchases may be affected. Anecdotal evidence based upon newspaper and broadcast media indicates that U.S. economic health is recessed during this time frame and is supported by the consumption as a percentage of the GDP, in table 1.
The healthcare industry comprises approximately “17.5% of the GDP” as stated by Alpern-Rosenthal, a medical services organization (Alpern-Rosenthal, 2011). There is little doubt that demands for health-care will always exist, it is reasonable to expect “elective procedures that can be delayed pending more

Related Documents