FINANCE
Is the Economy Primed to Start Business in 2020? Starting a business in any economy should be a calculated decision. Multiple factors need to be considered. Let’s look at a few key areas: by Dave Jones, Consultant, The Franchise Consulting Company
WHAT ABOUT LENDING AND INTEREST RATES? The average 30-year fixed mortgage rate started 2019 at 4.68% and steadily declined before closing out the year at 3.93 percent. In 2020, rates are expected to remain mostly stable, not straying too much higher or lower from the 4% mark. Greg McBride, CFA, Bankrate.com chief financial analyst, predicts mortgage rates will stay relatively stable around 4% in 2020. How the Federal Reserve could impact rates: It’s challenging to predict where rates will head in the future, as daily news has the power to sway rates. But if the Fed’s attitude is any indication, then rates should remain low next year.
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FEBRUARY 2020 | WWW.FRANCHISEJOURNAL.COM
WHAT ABOUT THE ECONOMY? Jobs gains were surprisingly strong in November, showing the economy still has a lot of oomph left. 266,000 jobs were added in November of 2019. Monthly job growth in 2020 is likely to average 150,000 jobs per month, down from 180,000 in 2019 and 223,000 in 2018. Partly, that is because there are fewer available workers to hire, given the low unemployment rate. But the smaller gains will also signal that the economy is slowing down to a more moderate growth rate. TOP PERFORMING INDUSTRIES IN A MORE MODERATE ECONOMY. While it is impossible to guarantee that an
