The US economy has surpassed expectations for the month of January by adding 350,000+ jobs. The unemployment rate was also at 3.7%, and has been under 4% for the past two years. Consumer spending grew in both goods and services, and exports and government spending both increased. The real GDP increased by 3.1%, and the current dollar GDP increased by 6.1%. Previously, it was expected that the US economy would soon enter a recession, however, with this new data and information, it is now expected that the market will remain growing. The International Monetary Fund expects the US economy to grow 1.8% this year.
Despite the glowing reports of the economy doing well, it appears that the economy is slowing down and that inflation continues to be a problem. There are expectations that the Fed to may intervene to help the economy by lowering interest rates.
ReplyDeleteLooking at future month expectations and trends, there is still possibility for recession and we are by no means in the clear. While forcasts are hopeful, in the month of February there was an overall decrease of GDP. March is prospectively to be better, but until the data is released, we do not know the overall long term patterns of what will come for the economy. As Pranay stated above, the Fed is most likely to intervene.
ReplyDeleteAlthough I am not really confident on what this means as an economy, it is funny to see that economists keep saying we are doomed for a recession but the American economy keeps prevailing. I wonder how long it will take for it to be sure in either direction. Labor indicators have been relatively good and spending.
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