Do Election Years Spur Industry Growth? U.S. Presidential Terms (1997 to 2016) Gross Domestic Product Growth over the Previous Year

June 24, 2016  by in General   

This is the third factoid in a series of five factoids exploring the possible connection between election years and a healthy economy. Looking back over the past 20 years and the elections those years encompassed yields interesting results. With the exception of the Great Recession in 2008, a possible heightened sense of confidence and hope for the future during election years may partly be responsible for higher furniture sales growth, consumer confidence, gross domestic product and lower unemployment rates.

The Gross Domestic Product or GDP is defined as the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. The GDP has made its largest gains during election years with the exception of the Great Recession. In both Bill Clinton’s 2^nd term and George W. Bush’s 1^st term, the value of U.S. goods and services increased by more than 6.5 percent from the previous year. It remains to be seen whether 2016 will follow the same trajectory. The fourth factoid of this series will show the drop in unemployment rates during election years.

Source: U.S. Department of Commerce