The US government has lowered its Gross Domestic Product estimate from 3 percent, to 2.7 percent for the second quarter of the current year. A reduction in consumer spending levels was the main reason given for the downgrade. Despite the reduction, this marks the third straight quarter that the economy has expanded and somewhat eases concerns of the possibility of a “second-dip†recession.
On a more negative note however, the result is weak when compared to the growth levels experienced in the aftermath of previous recessions. This, together with ongoing problems in Europe, has some analysts concerned that the global economy will continue to struggle for some time yet.
High unemployment also continues to place a damper on any recovery. The number of new jobless claimants did decline by 19,000 new claims last week, but still, nearly half a million people filed for benefits. The number of people receiving extended benefits also rose.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012