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The US economy has created over 100,000 jobs in each of the past seven months.But still well below the 200,000 needed to rapidly bring down the unemployment rate which remained at 8.2% at the end of March 2012.
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US Economic Status 2012 Powered by: http://www.rslfundingllc.com
Overview The US economy has created over 100,000 jobs in each of the past seven months. But still well below the 200,000 needed to rapidly bring down the unemployment rate which remained at 8.2% at the end of March 2012. GDP growth, income and consumption are all positive, but are growing at below-trend rates, and the housing market still shows no sign of life. Powerd by: http://www.rslfundingllc.com
Cash Flow And Interest High oil prices are presenting a significant headwind to the US economy. while the Federal Reserve continues to try to stimulate it with durable, near-zero interest rates and the possibility of a third round of quantitative easing. Overall, the economy should be poised for positive but weak GDP growth of around 2% in 2012 and 2013. Powerd by: http://www.rslfundingllc.com
Household consumption Household consumption showed signs of easing at the end of 2011 and early 2012, with much lower growth in spending +1.4% year/year in January, compared to the long-term average of 3.3% Powerd by: http://www.rslfundingllc.com
Developments In Investment • Business investment in equipment and software has already posted a strong recovery, and this is expected to continue over a large part of 2012. • Conversely, construction investment continues to suffer greatly from the state of the housing market Powerd by: http://www.rslfundingllc.com
Fiscal Policy in turmoil President Obama recently presented his fiscal year 2013 budget, which would likely increase the deficit, and the Republicans countered with a budget to cut spending and reform entitlements. Powerd by: http://www.rslfundingllc.com
Serious Fiscal Issues Will Arise in the fall: The payroll and Bush tax cuts are set to expire just as a reduction in jobless benefits and mandatory sequestration budget cuts arise The debt ceiling may need to be lifted again The presidential election is likely to focus relentlessly on the economy and the nation’s finances. Meanwhile, no president since World War II has ever been re-elected with an unemployment rate this high. Powerd by: http://www.rslfundingllc.com
External trade The growth impulse contribution from foreign trade was for a time positive I in 2011, but it will again become negative from 2012. Powerd by: http://www.rslfundingllc.com
while the trade and current account balances risk remaining in strong deficit under the combination of (i) US demand for imports, particularly from China, Japan and Europe ii) weakness in those same economies widening the gap; and (iii) continued high oil prices, which have contributed significantly to the deficit with the OPEC nations Powerd by: http://www.rslfundingllc.com
US Trade From Jan 94-2013 Powerd by: http://www.rslfundingllc.com
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