http://www.bbc.co.uk/news/business-22127332
According to the article, official figures have shown that US retail sales fell in March across all sectors, suggesting that recent tax rises are starting to affect consumers. Also, jobs figures released last week showed less than 90,000 new jobs were created last month. Because the population is growing, that number is well below the rate of job creation needed to maintain employment levels. It seems like the US economy is going through another slowdown. Let's just hope that it will only be temporary.
Since the economy started so strong at the beginning of 2013 it is only inevitable that it will not last. The economy is set to slow as an effect of the government spending cuts take hold but this will likely leave the central bank stimulus in place until 2014. Even though the population rate is increasing the labor market is still expected to continue to heal.
ReplyDeleteThis slowdown in the economy is not forecasted to be long lasting. As Maggie stated, the economy started at an extremely rapid rate which is almost impossible to maintain. Although it is predicted to slow down, it will actually move to a steady growth rate, rather than unexpected fluctuations.
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