U.S. One Quarter Away From Recession but Economists Are Optimistic
The U.S. economy contracted for the first time in three years in early 2014, shrinking at an annual rate of 1 percent due in part to an unusually harsh winter in some of the country's more populous states.
The U.S. economy contracted for the first time in three years in early 2014, shrinking at an annual rate of 1 percent due in part to an unusually harsh winter in some of the country’s more populous states.
The Guardian reports:
ING’s James Knightley said most of the downward revision to growth had been caused by companies running down their stocks and said the contraction was not as bad as it looked.
Noting that many companies were likely to have run down inventories due to transport problems caused by the bad weather, Knightley added: “With demand indicators looking pretty good for the second quarter of 2014 we are expecting a much stronger outcome for GDP growth in the current quarter (4.5% annualised) with inventory rebuilding likely to play its part.”
Paul Ashworth, chief US economist at Capital Economics, said the run-down in inventories in the first quarter would lead to the bounce-back in the second quarter being even bigger because companies would be rebuilding their stocks of goods.
Read more here.
— Posted by Alexander Reed Kelly.
Your support matters…Independent journalism is under threat and overshadowed by heavily funded mainstream media.
You can help level the playing field. Become a member.
Your tax-deductible contribution keeps us digging beneath the headlines to give you thought-provoking, investigative reporting and analysis that unearths what's really happening- without compromise.
Give today to support our courageous, independent journalists.
Editorial Cartoons
Media
As mainstream outlets continue to focus on inflation, consumer sentiment about the economy remains staggeringly low.
Opinion
Staunch capitalists like Gurner tell us every day they want more exploitation and precarity for people just trying to get by.
Ear to the Ground
The administration says the moves will safeguard renters and promote rental affordability.
Business & Economy
The cost of living might be rising faster for them.
Asia Pacific
In India, Pakistan, and Sri Lanka, religious politics has led to economic disaster.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.