Prolonged housing woes overshadowed by apprehension over feeble job market
The U.S. economy annual rate of growth was 2.5 percent during the quarter ending Sept. 30, in a report released by a government report lessoning fears that the U.S. would dip into recession number two, although the pace is still too slow to significantly reduce the high rate of unemployment.
New data released on Thursday by the Commerce Department revealed slow although steady expansion of the economy all through 2011. The data from the third-quarter fell in line with projections by economists. Consumer spending, most notably for autos, helped heighten growth. A 2.4 percent, increase in personal consumption as compared with only 0.7 percent growth during the second quarter.
A good part of that increase, along with other economic bustle, was businesses and consumers playing catch up after the severely sluggish growth in the early part of this year, created partially by the disruptions in the supply-chain caused by the Japanese tsunami, and earthquake. But even in an attempt to catch up for the sluggish growth early on in 2011, any economy "re-acceleration" during the third quarter wasn't all that fast.
Given the lack of strength we saw early on this year, there's not much catching-up,. A couple of steps forward and one step back.
resulted in an unsustainable spurt of third-quarter growth. The closely watched consumer confidence index plummeted during the month to levels unseen since the economic recession was over in 2009.
Prolonged woes over housing are even overshadowed by consumer apprehension over the feeble job market, as emphasized by consumer sentiment decline going back as far as 2008-09 rates, Long term economic growth over 2.0 a percent rate is cleanly not likely to happen. However, any double-dip recession threat is suspended for the moment, however the economy is "just muddling along, not on
Another recession fears were stoked as the economy scarcely grew during the first quarter of this year, expanding at only a 0.4 percent annual rate. A recession is considered two quarters in a row of economic retrenchment.
Factors were looking only somewhat improved during the summer, as the government projected that the U.S. economy expanded at an anemic rate of 1 percent during quarter number two.
The data released in August, in combination with persisting poor job growth plus a historic U.S. credit rating downgrade by Standard&Poor’s subsequent to the bitter debt-limit-ceiling deliberation, led economists to caution the U.S. was seeing likelihood of slipping into another recession a in little over two years since the last one was over.
However the government, last month took another look at second-quarter economic expansion which moved to 1.3 percent, while consumer spending increased and other information started thrusting away from one more downturn.
Nov 2, 2011