| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : US Economy Last Updated: Jun 1, 2015 - 3:18 PM


US economy stumbles again in 2015
By Michael Hennigan, Finfacts founder and editor
Jun 1, 2015 - 2:01 PM

Email this article
 Printer friendly page

On Friday it was reported that GDP (gross domestic product, the broadest measure of goods and services produced across the US), shrunk at an annual rate of 0.7% in the first quarter of 2015 compared with an initial estimate of -0.2%. Also last week, UK GDP was not revised up from an initial weak level of 0.3%; Canada's economy shrunk at a 0.6% annualised pace in the first quarter of 2015 while the Swiss economy contracted 0.2% compared with the previous quarter.

Different reasons — bad weather, strong dollar and a port strike in the US; slowing momentum in the UK; the fall in oil price in Canada and the strong Swiss franc were among the explanations but the health of the US economy is the important concern given its role in global growth. Last month the Bank of Mexico lowered its forecast for economic growth in 2015, citing a drop in the country’s oil production and more modest expectations for the US economy.

The Wall Street Journal says that economists have "warned growth will likely remain modest, in line with the roughly 2% overall pace of recent years. The first half of 2015 is shaping up to be one of the weakest six-month stretches of the expansion, with economists predicting annualized growth of between 2% and 3% during the current quarter. By comparison, the economy grew more than 3% a year on average between 1983 and 2007."

While hiring and mortgage applications have been strong in recent months, consumer spending, accounting for than two-thirds of overall economic output, grew at a 1.8% rate in the first quarter, compared with the fourth quarter’s 4.4% growth while household spending on durable goods — expected to last at least 3 years — was the weakest in nearly four years.

On Friday the University of Michigan final May consumer sentiment index was at a six-month low of 90.7 after the index hit an 11-year high of 98.1 in January.

The strong dollar and weak overseas demand is also hitting US prospects.

Richard Moody, chief economist at Regions Financial Corporation commented on Friday: "Many analysts seem tempted to simply brush aside the contraction in real GDP in [the first quarter] as a function of transitory factors —  harsh winter weather, the port strike — that will have no lasting effect. We caution against treating the first-quarter GDP data so cavalierly, as doing so overlooks the more structural forces that weighed on the economy in [the first quarter] — the ongoing pullbacks in job counts and investment in the energy sector and related industries, still uncertain global growth prospects, and the stronger US dollar.”

The Bureau of Economic Analysis reported on Friday: "Real nonresidential fixed investment (business investment) decreased 2.8% in the first quarter, in contrast to an increase of 4.7% in the fourth. Investment in nonresidential structures decreased 20.8%, in contrast to an increase of 5.9%. Investment in equipment increased 2.7%, compared with an increase of 0.6%. Investment in intellectual property products increased 3.6%, compared with an increase of 10.3%. Real residential fixed investment increased 5.0%, compared with an increase of 3.8%.

Real exports of goods and services decreased 7.6% in the first quarter, in contrast to an increase of 4.5% in the fourth. Real imports of goods and services increased 5.6%, compared with an increase of 10.4%."

Related Articles


© Copyright 2015 by Finfacts.ie

Top of Page

US Economy
Latest Headlines
US jobs rose by 215,000 in July; Unemployment rate stable at 5.3%
US economy grew at weak pace in Q2 2015 - Worst expansion since 1945
Decoupling of per capita GDP, productivity, private employment, and median family income in America
US economy stumbles again in 2015
Income gap highest in 30 years; No inequality rise in best-paying US firms
Fed minutes raise doubts about fragility of US recovery
Senate Democrats block trade deal authority for Obama
Five firms held 25% of top US non-financial companies cash pile in 2014
US added 223,000 jobs in April; Broad jobless rate at 10.8%
Investment struggles as dividends/ share buybacks at top US firms to exceed $1tn in 2015
US economic growth plunged in Q1 2015
Why the Fed may (almost) never raise interest rates
US jobless rate falls to 5.5%; Broad rate at 11%; Participation rate at 1978 level
US added 257,000 jobs in January; Broad jobless rate at 11.3%
US economy will soon see best years in a decade
US annualised GDP slowed sharply in final quarter 2014
US budget deficit to fall to 2.6% of GDP in 2015
US added 252,000 jobs in December; Jobless rate falls to 5.6%
US adds 321,000 jobs in November; Private sector adds 10.9m jobs in 57 months of growth
US manufacturing slowed in November
US retail spending over Thanksgiving weekend fell 11%
US consumer spending weak in October; Business investment fell again
US third-quarter GDP revised up to 3.9% annualised rate
After destroying banking secrecy US helps Swiss exporters
US oil imports from OPEC cartel at 30-year low
Tax-inverted "Irish" firm Actavis agrees to buy US Botox maker Allergan
US nonfarm payroll employment rose 214,000 in October' Jobless @ 6-year low
Swiss bankers await fallout of US tax evasion acquittal
Two PMI reports give contrasting trends on US manufacturing
US GDP increased at annualised 3.5% in third quarter of 2014
US city home price growth slowed again in August; Consumer confidence rebounded in September
US new orders for manufactured durable goods fell again in September
Loans to buy US shares at record highs
Global markets slide; US industrial production best in 3 years & jobless claims in 14-year low
US federal budget deficit dips to 2.9% of GDP in fiscal year 2014
US added 248,000 jobs in September; Jobless rate falls to 5.9%
US set to become world’s leading liquid petroleum producer again
Obama issues new rules to combat tax inversions
US Securities and Exchange Commission to pay $30m award to foreign whistleblower
Typical American household income in 2013 was below the 1989 level