Tuesday, January 24, 2012
U.S. GDP Growth Rate Forecast: 3% in Q4 on Consumer Spending, Q1 Likely Weaker
Some have said that the United States is on its way to a double-dip recession, but this article says otherwise. House construction has increased, companies have rebuilt inventories, and in general, people are becoming more confident as leading economic indicators has shown progress. A fourth quarter growth rate of 3% in 2011 is the highest rate the country has seen in a year and a half. New house construction and old house purchases has seen an increase as well. I think this point is a good indicator of forward progress away from another recession because the housing sector failing was a big factor in sending our country into a recession in the first place. A final point this article makes is the concern in the EuroZone. Forecasters worry that if governments fail, credit can freeze up again and negatively affect the United States.
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I would take a look at Jaime's blog post. I think it directly correlates to your post. The one things that I have recently noticed is that some of the "indicators" haven't really pervailed in the past. Although, the housing market recovery may be a strong one given it is a stronger indicator of the American publics spending habits..... will be interesting to see the consumer confidence index
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