Archive for March, 2015

US Economy Starts to Slow

Monday, March 30th, 2015

US Economy — That was unrevised from the prediction the authorities last month printed.

Strong consumer spending restricted the slow down in the rate of action, although companies restrained back on equipment and stock investment. The market grew in the 3rd quarter. Slower investment could be meant by slower profit increase in the forthcoming months.
Corporate gains from outside the USA dropped at an 8.8 percent speed, the steepest drop since the 2007-2009 downturn.

“Slower profit increase could mean slower investment in the forthcoming months,” said Thomas Costerg, an economist at Standard Chartered in Ny.

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Multinationals including technology giant IBM (IBM), semiconductor manufacturer Intel (INTC), industrial conglomerate Honeywell (HON) and Procter & Gamble (PG), the planet ‘s biggest household products manufacturer, have warned the dollar will damage their gains in 2013.

As in the United Kingdom, there is increasing worry about the strong value of their currencies. Although sterling is not as highly valued as the dollar currency, the very weak Euro is effectively having the same effect. For US readers, UK economy updates are accessible on British television by using a UK VPN – like this.  The problem is quite simple, a high value (or relative value) of your currency makes your goods more expensive which will affect exports.

The dollar increased 7.8 percent against the currencies of the primary U.S. trading associates between June and December.

For all of 2014, after tax corporate profits dropped 8.3 percent, the biggest annual fall since 2008.

Economists had anticipated fourth quarter GDP growth will be revised as much as a 2.4 percent rate and after tax corporate profits would grow at a 1 percent pace.

The dollar dipped against a basket of currencies, while costs for U.S. Treasuries increased.

Jemma Williams

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US Economy Generates Over 1 Million New Jobs

Wednesday, March 4th, 2015

Washington (AFP) – US companies kept their doors wide open for brand new hires limiting a three-month surge that found a stunning one million jobs created throughout the united states.  A better-than-anticipated January total of 257,000 new jobs that were generated via the internet made for the greatest hiring with a comprehensive variety of businesses enlarging payrolls despite the midwinter economic slow down, since 1997.

Together with the market indicating the 11th straight month of 200,000-plus occupations included, “This was another very powerful employment report for the US,” said Harm Bandholz of UniCredit. Most economists said the new data showed actual signals of the market increasing grip following a bumpy 2014 during which it grew a small 2.4 percent.

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There were weaknesses in the amounts Most of the recent occupations were low-wage positions as well as how many long term jobless increased.  Meanwhile a rise a data point saw as an important indication of labor market tightening — was just marginally over the inflation tendency. After dropping in December, hourly wages increased 12 cents, or 0.5 percent, to $24.75.

While the rise was supporting, economists said the wage movements in the last year were not too consistent to declare that American workers’ pay checks are securely rising.

“The labor market isn’t yet tight enough to create significant wage increase, meaning future consumption increase is likely to be restricted,” said Dean Baker of the Center for Economic and Policy Research.

However, said Chris Williamson the Labor Department report was largely great news.

“The US labor market showed no signs of cooling in the beginning of the year, despite recent evidence to indicate the economy moved down an equipment throughout winter,” he said in a client note.

“Wage increase remains a significant disappointment but is at least showing signals of picking up.”

The upsurge in job development in the previous year has dramatically cut against the US unemployment rate. The 5.7 percent speed at the conclusion of January compared with 6.6 percent a year past, and 8.0 percent at the start of 2013.  Analysts consider it is going to drop close to 5.0 percent by the end of this year, eventually placing the deep damage of the 2008-2009 Great Downturn behind.

The January occupations marketplace report was seen as powerful enough to support the march of the Federal Reserve toward increasing its near-zero interest rates at the center of the year.  Fed policy makers happen to be keeping their eyes on employment increases and particularly wages to determine whether the market is growing strongly enough to weather a tightening of monetary policy, with inflation tame.

“With three-month average job increase of 336,000, the Fed may begin thinking about liftoff before June,” said Chris Low of FTN Financial.

John Hargreaves

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