Global Economic Crisis » US economy http://www.economiccrisisblog.com Wed, 21 Jul 2010 16:32:18 +0000 http://wordpress.org/?v=abc en hourly 1 US economy spurred by consumer spending? http://www.economiccrisisblog.com/economics/us-economy-spurred-by-consumer-spending http://www.economiccrisisblog.com/economics/us-economy-spurred-by-consumer-spending#comments Wed, 28 Apr 2010 01:01:00 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=992 The US economy is speeding towards recovery, which is an encouraging and also heartening sign. It seems now that consumer spending may have effectively spurred on the growth in the first quarter. This bodes well for US economy growth in 2010. Senior economists are also saying that the other pillar of the US economy has to be jobs and the growth of which will ensure that the US economy grows as a whole. Higher consumer spending internally means that recovery can expect to be rather self sustaining and internally fueled and not just by externally dependent exports growth. This will help companies like Starbucks which are dependent on consumer spending within the country.

The increase in the internal growth of companies will lead to better job prospects and when people get jobs and earn money, they will spend, which in turn leads to greater consumer spending. Thus internal jobs creation is quite one of the keys to priming demand and leading to all-round recovery for the economy. It has also been noted that the US economy, which is the largest in the world grew at a very fast clip in the last quarter of 2009, which was much faster than the growth seen in the last 6 years.

]]> http://www.economiccrisisblog.com/economics/us-economy-spurred-by-consumer-spending/feed 0 Some more encouraging indicators in the US Economy http://www.economiccrisisblog.com/economics/some-more-encouraging-indicators-in-the-us-economy http://www.economiccrisisblog.com/economics/some-more-encouraging-indicators-in-the-us-economy#comments Tue, 27 Apr 2010 16:31:53 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=990 The US Economy is back on a roll, and this is something that even many of its staunchest critics will have to aver. In addition to this, it seems as if the US Economy is rebounding and recovering faster than many of its rivals in the world stage. Till now the manufacturing sector had been leading the recovery. But figures in March reveal that the sale of new houses has increased by as much as 27% in the month of March which is indicative of the rate of recovery of the US Economy. Again, you also see a situation where orders for durable goods have climbed at a fast clip, which is indeed quite good news all around.

There have been other indicators too that have been quite resoundingly encouraging, that include increase in stock prices and also pick up in business exports and investment which are said to increase the rate of job creation. This in turn is expected to boost the level of consumer spending on which more than 70% of the US Economy depends. It surely seems as of the US Economy is not limping but rather racing back to recovery which is very good news that so many people had been waiting so long for.

]]> http://www.economiccrisisblog.com/economics/some-more-encouraging-indicators-in-the-us-economy/feed 0 Geithner refers to encouraging signs of the US economy http://www.economiccrisisblog.com/stock-market/geithner-refers-to-encouraging-signs-of-the-us-economy http://www.economiccrisisblog.com/stock-market/geithner-refers-to-encouraging-signs-of-the-us-economy#comments Mon, 26 Apr 2010 01:20:54 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=988 There are a lot of folks who had been waiting and watching for quite some time for some encouraging signs from the US economy. It seems like these people will have something to cheer about, even as they wait to see concrete proof of this. Prima facie however, the news that is emanating from the US economy is quite cheerful and encouraging. It is also being seen that the US economy is rebounding from the recession much faster than some economies around the world, be it in Europe or otherwise. While there are still a few concerns in sectors like housing, the technology sector for instance is very strong and seems to be going from strength to strength. Tim Geithner, the US Treasury Secretary had mentioned that the payback of $6.7 billion by General Motors is a great sign as it is the fastest rate of jobs creation by the auto giant in over a decade or so.

A lot of people are of the firm opinion that the US economy has some inherent strengths and resilience that should be encouraged and emboldened by means of encouraging small and medium businesses that had been impacted bad by the US economy recession.

]]> http://www.economiccrisisblog.com/stock-market/geithner-refers-to-encouraging-signs-of-the-us-economy/feed 2 The US economy is showing signs of recovery http://www.economiccrisisblog.com/economics/the-us-economy-is-showing-signs-of-recovery http://www.economiccrisisblog.com/economics/the-us-economy-is-showing-signs-of-recovery#comments Sun, 25 Apr 2010 01:27:30 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=986 The US economy is showing signs of recovery
The US economy is showing many signs of recovery and this is an encouraging trend that a lot of folks have been looking forward to. The economic stimulation by the government has been quite effective in ensuring that some of the indictors are firing such that the economy could be rebounding back. It is also being seen that the US economy is rebounding back more than some of the other economies around the globe that had been affected by the recession. The IMF has forecast that the US economy will grow by as much as 3.1 percent with the countries in Europe expanding only by around 1% and Japan by 1.9%. This is no comparison with economies like China that may grow 10% and Indian by as much as 9.9%.

It is heartening to note that the US economy is bouncing back after such a huge slump and this has stopped a prolonged depression. The only thing that is worrisome is the fact that most countries are pumping in huge amounts of money as part of their bailouts and this could lead to inflationary pressures all around. The stimulus program in the US economy may have boosted the growth by 1 % point, which is not bad.

]]> http://www.economiccrisisblog.com/economics/the-us-economy-is-showing-signs-of-recovery/feed 0 Leading Indicators of US economy at a high http://www.economiccrisisblog.com/economics/leading-indicators-of-us-economy-at-a-high http://www.economiccrisisblog.com/economics/leading-indicators-of-us-economy-at-a-high#comments Sat, 24 Apr 2010 01:32:40 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=984 A private research group has claimed that the US economy is witnessing a high in terms of leading indicators that are quite encouraging. Indeed, these indices have not been so encouraging in quite along time which seems to point out a kind of sharp and smart recovery for the US economy. The index of these leading US economy indicators has shown an uptrend of 1.4% and it has risen for the 12th straight month which is indeed quite encouraging and points to the US economy coming out of the woods pretty soon. The rise by 1.4% is higher by 0.4%over the 1% that economists and analysts had predicted.

The leading indicators seem to show a slow recovery which seems to be getting sustained over the months and could continue o the next few months in the US economy. While US stocks gains remained slim, debt prices and the dollar also did not change much. The index was pulled down by real money supply and demand for non defense capital goods. Consumer expectation also remained a key area of concern. The recovery in the manufacturing sector as well as stock market prices did have quite a weight on the US economy leading indicators.

]]> http://www.economiccrisisblog.com/economics/leading-indicators-of-us-economy-at-a-high/feed 0 Critical mistakes the US economy made http://www.economiccrisisblog.com/economics/critical-mistakes-the-us-economy-made http://www.economiccrisisblog.com/economics/critical-mistakes-the-us-economy-made#comments Fri, 23 Apr 2010 01:34:19 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=982 The US economy may be coming out of the woods, but it seems as if the US economy had made a lot of mistakes that are coming home to roost and to haunt it. the free market economy may be quite a potent force but if it is allowed to run unfettered and uncontrolled it could be a bull in a china shop and let loose forces that can engulf the economy and led it to ruin also. This is what is the view of Tim Geithner, the US Treasury Secretary. For instance it was a big mistake to have banks, and financial institutions get too big for their boots and not be regulated, leading to the sub-prime crisis and its aftermath. Also, having the banks as too big to fail means that the US economy has its hands tied behind its backs and having to give in to huge bailouts of institutions that have not lived up to ethical ideals.

There are encouraging signs however that Americans may have eased a little bit of their strings and are spending a bit more. But it is not enough to keep the wolf away from the door and there are still huge concerns on the employment front that may take years to clear up.

]]> http://www.economiccrisisblog.com/economics/critical-mistakes-the-us-economy-made/feed 0 Is the US economy on the right track? http://www.economiccrisisblog.com/economics/is-the-us-economy-on-the-right-track http://www.economiccrisisblog.com/economics/is-the-us-economy-on-the-right-track#comments Sat, 17 Apr 2010 05:58:16 +0000 Stephen Cline http://www.economiccrisisblog.com/economics/is-the-us-economy-on-the-right-track There are quite a few encouraging signals that are emerging from the US economy which seems that it could be party time sooner rather than later. Take for instance the case of Janet Yellen, who is the president of the Fed Res Bank of SF. She has said that the US economy is quite on the right track, which means that the borrowing costs would have to be lifted at some point or the other. The news is good and it has been awaited for long, but it is welcome when it finally came along. But we must not lose sight of the fact that the recovery is all too fragile and the party could be ruined by any single event that threatens it. This is why the US benchmark interest rates have been kept low for an extended period of time.

Data from the US economy in terms of factory production as well as retail sales seemed to echo the optimism that is being voiced in some quarters. The job data is also better now as there seems to be a slow and steady rebound of the number of jobs being created around the US economy, all of which makes it seem as if the US economy is emerging from the woods.

]]> http://www.economiccrisisblog.com/economics/is-the-us-economy-on-the-right-track/feed 0 US economy to grow at a modest pace in 2010 http://www.economiccrisisblog.com/economics/us-economy-to-grow-at-a-modest-pace-in-2010 http://www.economiccrisisblog.com/economics/us-economy-to-grow-at-a-modest-pace-in-2010#comments Thu, 15 Apr 2010 02:49:05 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=976 Every now and then, people express their views as to how the US economy is shaping up and also as to the pace of growth, now that it seems like the US economy is slowly emerging out of the woods and could be inching its way towards a semblance of some sort of normalcy. While the US economy parameters and indicators seem to be showing some slow signs of recovery, it remains to be seen how long it will actually take for full blown growth and recovery of the economy. There are many who are saying that the rest of 2010 will see a kind of moderate pace of growth for the US economy and the growth will really not be outstanding, remarkable or spectacular by any stretch of imagination.

There are signs that the housing sector is not likely to contribute to much growth. The subprime crisis has hit this sector so hard that it is tough to imagine any recovery at all in the short or even the medium terms. The consumer spending is likely to pick up somewhat given the fact that consumer confidence seemed to be on the upswing to some extent. But robust and quick growth is something that is still a year away at least.

]]> http://www.economiccrisisblog.com/economics/us-economy-to-grow-at-a-modest-pace-in-2010/feed 0 The end of the recession not indicated by the US economy http://www.economiccrisisblog.com/economics/the-end-of-the-recession-not-indicated-by-the-us-economy http://www.economiccrisisblog.com/economics/the-end-of-the-recession-not-indicated-by-the-us-economy#comments Wed, 14 Apr 2010 02:59:17 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=974 There are many indicators and factors of the US economy that seem to be staging a comeback and a turnaround. The US economy may have come back from the very brink of disaster in the form of recession. But it seems as if the constituents of the US economy do not want to admit so soon and announce the fact that the US economy may finally be out of recession. For one, the NBER or the National Bureau of Economic Research has been studying economic cycles of the US economy and it does concede that so many of the factors seem to be showing a smart recovery. But the data does not seem to be enough to herald and hail the fact as being proof of the end of recession as yet.

The NBER is quite respected as an academic organization and it has said that the data coming in is quite rudimentary. There will be still a few more months before anything definite can be said of the recovery as such. There are some who say that since growth came back in June or July in 2009, the economy has come out of recession then itself. But this is something that many do not want to admit as soon as they think it’s premature for that.

]]> http://www.economiccrisisblog.com/economics/the-end-of-the-recession-not-indicated-by-the-us-economy/feed 0 US economy to benefit from strong US-Indian ties http://www.economiccrisisblog.com/economics/us-economy-to-benefit-from-strong-us-indian-ties http://www.economiccrisisblog.com/economics/us-economy-to-benefit-from-strong-us-indian-ties#comments Wed, 07 Apr 2010 17:00:17 +0000 Stephen Cline http://www.economiccrisisblog.com/?p=966 The US Treasury Secretary Timothy Geithner has hailed US–India ties and has said that these ties bode well for the US economy and its fight against recession, Geithner is in India on a visit to New Delhi and he has the opinion that US-Indian ties will bring about a great deal of cooperation to create a more stable world economic systems as well as balanced growth of the global economy. He was gushing about the scope of this cooperation that has not been utilized to its fullest potential and needs to be capitalized if mutual benefits were to accrue from the close ties and relationships.

Geithner expressed a keenness to get the talks and the ties to a new level of cooperation between the worlds oldest and its largest democracies. He said that India had shown a great deal of maturity as well as sagacity in dealing with the economic crisis, which is ensuring that the world economy is growing at a time when the so called developed economies were reeling under the onslaught of the world economic crisis. The Indian baking system has also stood tall, and ensured that while India saw 6.8% growth in GDP last year, in the next it could well reach 8.5% which is so very impressive.

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