US Private Sector Emerges from Government Shadow

Overall in 2011, private sector gained a lot of strength. This is due to the shrinking of the government and the corresponding growth of the private sector. For example, private sector grew by 4.5% in the fourth quarter. Inflation also subdued during that period. However, the price index for personal consumption expenditure grew at 2.4 percent, which means that we can expect a reduction in unemployment. This helps explain why the probability of Barack Obama being re-elected has increased up to 55 percent from 52 last week.