Rate rise talk pushes dollar upwards, but not enough to get us out of the recession
This year, while the US Dollar strengthened against the yen for a second time this week, US GDP growth declined 0.6%. This was mostly due to a contraction in US business investment. But there were signs of a recovery, in the form of growth in exports and manufacturing.
“It was disappointing, given the recent expansion and the rebound in consumer confidence, but the economy is now improving, at least slightly, and the pace of job growth is also showing signs of improvement구미출장마사지,” says Andrew Rind, chief economist at Bank of America Merrill Lynch. He adds: “It’s quite a positive news story for the economy, albeit a bit more muted than it may at first appear.”
A strong US employment rebound could help boost the growth rate in the second quarter, and that will help prop up the US housing market: “The jobs growth should boost the home-value-to-income ratio and help keep the inflation outlook in check,” says Rind.
This isn’t just because this is the second quarter after all these reports of a second half of the US recession. The US economy has been in one of its longest and deepest recessions since the early 1990s, with household income in the US just 1.9% of GDP less than it was during the worst of the 2001 recession, which the Fed says ended by mid-2009. And unemployment rose to 4.2% last year, higher than the previous high for four quarters in a row.
But the recovery has not been complete. While economists have been very impressed by the US economic expansion, there are some questions about how deep the recovery has dug. The last quarterly economic data released from the Bureau of Labor Statistics show that in February, the economy was up 0.2% over the year before and it was at its weakest for 30 years in May.
The reason for that is that workers added fewer hours to pay off their take-home pay but카지노 게임 at the same time, they created less full-time jobs, meaning that more than half the country’s jobs were still to be created. This created additional demand for labour, which was supported by an expanding housing market but also by a glut of empty storefronts and empty buildings and lots of empty land, says David Blanchflower, chief US economist at the British bank Societe Generale in London.
The result was that as the housing market recovered, employment in part-time jobs sur청주출장마사지ged, but tha