Search
 

Defense Spending to Increase By $24B

LOS ANGELES—According to the latest UCLA Anderson report, defense spending is estimated to rise annually by 2016, while unemployment rates are dropping and the national economy continues to grow.

By Kelsi Maree Borland | Updated on September 11, 2014

LOS ANGELES—According to the latest economic report from UCLA Anderson, national defense spending is expected to rise by $24 billion annually by 2016 due to increased issues in the Middle East. The report, which covers the 3Q14, also reveals that unemployment rates will decrease by 5.3% with jobs growing by 230,000 jobs per month nationally; and the national economy is continuing to expand with the GDP growing by approximately 3% over the next two years.

Senior economist David Shulman estimates that inflation will average 2% over the next two years, which is driven by increasing residential rents and healthcare costs. The decreasing unemployment and rising inflation will likely lead to the Federal Reserve raising rates as early as March 2015. Housing, nonresidential development and software and equipment investments will play a significant role in driving this economic growth. By 2016, Shulman estimates that housing starts will rise to 1.47 million nationally. Nonresidential construction is also expected to rise through 2016 by notably 8.2%. 

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.