Thursday, October 27, 2011
G.D.P. in America has Modest Growth
Although it may not seem like it to many Americans, America's economy is growing says this New York Times article titled “Economic Growth in U.S., Though Still Modest, Speeds Up”. From the second quarter to the third the G.D.P. increased 1.2%. Although that may not seem like much, that’s coming from a gradual 1.3% to a 2.5% growth in the third quarter. One of the most important questions to ask is where is this growth coming from? In this situation the main source of the growth is the consumer spending. Consumer spending in the economy has increased by 2.4%. This news is excellent because for the 25 years before the recession of 2008, the U. S. economy grew at a rate of 3.25% per quarter. Ian Shepherdson, the chief United States economist for High Frequency Economics, says that he wants the growth to eventually be at 4% but coming from 1.3%, he is fine with the improvement and he sees more improvement to come hoping to be around 3% of G.D.P growth soon. Even though the growth does sound promising many specific markets are still struggling. For example, the housing market continues to struggle with house values remaining low.