Wednesday, September 8, 2010
U.S. regions reporting slower growth
As the summer comes to a close, more parts of the U.S. are reporting a slower growth rates as the economy's momentum. Five of the twelve regions that are surveyed by the FED are reported as having slowed growth. The FED had seen that only two regions had decelerated growth during their July survey. What do you think is causing this deceleration now as the summer ends?
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4 comments:
I really just believe the middle class has started saving a lot more and spending less in such a scary economy. It is also a very difficult time for entrepreneurs to make money off of new businesses or ideas.
Summer is the season known for family vacations and family spending. Since children are out of school common household goods become more expensive to families as well as you need more food in the house and other things. With summer coming to an end both of these increase in family spending are coming to an end as well which is why growth would decelerate.
There could be many reasons why this economic growth would slow down. As the summer winds down, more people might want to save more money in preparation for holiday seasons and students who are going back to school.
The deceleration of growth rates when the summer comes to a close may result from lesser vacation spending and dining out. The weather may be of a concern as it approaches the fall.
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