US Economy Not Looking Too Bright For The Future

29 June 2012 12:00 - Phoebe Robinson

    



US Economy Not Looking Too Bright For The Future  

Figures have come in that show the US economy grew by 1.9% in the first quarter; this shows us that there was an increase in consumer spending. However this does not seem to have lasted as consumer spending seems to have calmed down as American’s hold back due to the worrying prospects of the global economy.

The newly revised GDP figures seem to match the figures originally speculated by the government, Commerce Department figures. The readings given in Washington today show an increase in GDP by a fall in corporate profits which is the first time this has happened in three years.

There has been a decrease in sales across the corporate circuit in America. This decrease reflects the caution Americans are taking at the moment. It seems households are reluctant to increase their spending. This is critical for the US economy as 70%  of the economy is accounted for by consumer spending and in line with that comes consumer confidence, which by the looks of things is not about to increase in a hurry. A struggling job market with unemployment figures increasing alongside a slowing global market will not make it easy to encourage US expansion.

Worryingly the number of applicants for unemployment benefits was sitting last week near the highest level of the year. This shows little improvement in the labour market giving even more of a dampener on the US economy which is looking very gloomy at the moment.

“The economy is really in a difficult spot at the moment,” said Jeremy Lawson, a senior U.S. economist at BNP Paribas in New York. “With the labour market weak and the outlook for incomes weak, it’s hard to see how consumer spending can grow solidly.”

6.jpg

PRODUCT RANGES: CURRENCY EXCHANGE
Foreign Exchange and Currency.
TRADING
Forex, CFDs, Shares and Futures.
INVESTMENTS
ISA, Pensions, Savings Accounts.
LOAN PRODUCTS
View all Loan and Debt Products.
CARD PRODUCTS
All Card Products Compared.
MONEY PRODUCTS
All Money Products Compared.
INSURANCE PRODUCTS
All Insurance Products Compared.

Is Everything covered for that Big Day ? Wedding Insurance
31 August 2018 - Which Way To Pay
Planning your wedding is one of the happiest times in your life , however we always need to make sure that we are covered for every penny spent . Wedding Insurance is a Must
Read More >>
Forever monitoring your endowment policy ?
08 April 2017 - Which Way To Pay
If this is your case then why not sell your policy on to make yourself some cash , and get what its worth.
Read More >>
Dreamt of that perfect overseas property ?
04 April 2017 - Which Way To Pay
EU overseas property mortgages have taken a whole new turn
Read More >>