Frequency of economic growth is now the red light
27, announced by the U.S. Commerce Department data show that the second quarter U.S. gross domestic product (GDP) increase of 1.5% annualized rate, the level of growth below 2% in the first quarter, compared with 4.1 percent growth rate in the fourth quarter of last year, the significant downturn in . The current level is only half of the Economists were expecting a normal recovery growth.
U.S. second-quarter economic growth fell further due mainly to the consumer spending slowdown, state and local governments continue to cut spending. U.S. personal consumption expenditures for the quarter increased by only 1.5 percent, the smallest gain in a record year, durable goods spending by 1%. On Tuesday, the United States will be announced in June personal income, consumer spending and the core personal consumption expenditure price index data, the outside world is expected that these indicators did not have significant growth.
Economic growth rate down, the job market reproduction of weakness. The June unemployment rate rebounded to 8.2 percent from 8.1 percent in May. Throughout the second quarter, the monthly non-farm jobs in the United States are the new number only 75,000, less than one-third of the average monthly level in the first quarter. From historical experience, the monthly average of new jobs to achieve at least 125,000 in order to effectively pull down the unemployment rate. Friday, the U.S. Department of Labor will announce the July employment data, analysts expect the month of new jobs may be 110,000, the unemployment rate will continue to remain high at 8.2%.
In addition, in the face of the decline in global economic growth, weak demand challenges such as lower energy prices coupled with the recent significant decline in overall U.S. inflation risks, whereas the risk of deflation is gradually outcrop. June consumer price index (CPI) rose 1.7 percent, unchanged from May rose substantially narrowed, compared with 3.9% increase last September.
Because the Fed is most concerned about the job market, the inflation rate, as well as three indicators of economic growth to fall, the market is the U.S. economy may reproduce recession fears intensified, and speculation on the decision-makers to take action again to stimulate economic growth is gradually heated. Previously, including Federal Reserve Chairman Ben Bernanke a number of Fed officials have said the job market has made significant improvement, the Fed will "further action".
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