Macroeconomic outlook of U.S. economy
For every four to six years U.S economy faces an economic slowdown. Thus the current market is now in forth year. The root of U.S. crisis and its economy can be traced backed to 2007, when U.S housing bubble burst which yields a financial meltdown in 2008. In average, the American trying to make ends meet in 2014, a market and a recession will probably look and feel the same. In early 2008, when the financial crisis began, then the U.S. national debt stood at $9.2 trillion. Figures figure out by the White House, the national debt will reach $20.0 trillion by the end of decade about 140% of our current GDP. Successful debt reduction requires fiscal constraint and policies that sustain the main expansion. This includes sympathetic financial policy and measures that address structural flaws in the nation. (Author)
The U.S. economy has grown more rapidly in the fourth quarter than estimated previously as end user spending scramble in the most three years, hence showing that expansion had thrust heading into this year’s harsh winter. Rational investors spending mostly on services, predominantly health care which helped to speed up the expansion, a sign that this year’s slow down is partly due to heavy snowfall and freezing temperatures. Retailers are waiting for the weather to improve to get a clearer picture of the economy.
Gross domestic product (GDP) grew at a rate of 2.6 percent annually from October to December, which is more than the 2.4 percent gain reported last month, and the figures from the Commerce Department showed. The norms were forecasted of 79 economists surveyed estimates it for a 2.7 percent increase.
Indicators of economy
Gross Domestic Product:
Gross Domestic Product (GDP) growth in the second quarter should re bounce at a rate of 2.5% to 3%, from a weather related. The inventory will slow down in the first quarter of the year. Economic activities on the macroeconomic level are still on track to grow at the rate of 2.7% for the year. Confidence of customers is rebuilding above the level that was for the winters when government shutdown happened. The positive gains will come strongly as business and customer’s confidence reinforce, when the overseas sales increases and the Europe begins to emerge from the prolong snooze. And the manufacturing purchasing index activity reports will show the strong expanding output.
Furthermore, there is a decent chance of an upside surprise to 2014 growth. Rational investor’s investments, spending and confidence are still below than the expected level what would be considered normal levels by the standards of past economic expansions. As the job growth becomes strong and consumers feel more protected then a righteous way of spending is getting better, more consumer income begetting more spending could be initiated. If this occurs rapidly then the quarterly growth is likely to exceed an annually at the rate of 3%. But if this does not...