Capital Ideas

Investment insights from Capital Group

Economic Indicators
The U.S. is firing on more cylinders

Chart showing that U.S. economic data has improved since last year.

The various components of the U.S. economy have struggled to get in sync in recent years, and the economy was largely propped up by a resilient consumer. But recently, business- and industrial-focused areas have provided momentum to overall growth. Manufacturing activity and corporate profits, both of which came under pressure in 2015 and 2016, have rebounded. Combined with strengthening capital expenditures and retail sales, these conditions point to accelerating growth in the second half. But with valuations stretched in many areas, look for industry leaders with a proven record of generating top-line growth. For example, Microsoft has achieved solid growth from its Azure cloud computing business and Amazon remains a leading provider of cloud services to businesses. Semiconductor-maker Intel is a leader in the design and development of equipment that runs data centers on which cloud computing relies.

Our latest insights

Hear from the investment team.

Don't miss out

Get the Capital Ideas newsletter in your inbox each week


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants' plan provider or employer.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.