Fall of American growth confirmed in Q4
Economic growth in the United States has declined in the fourth quarter 2007, while the number of unemployed is rising, revealed data published by the government in a country that fears is increasingly recession.
The gross domestic product (GDP) United States increased by 0.6% between October and December annualised rate, in part due to a drop in investment in residential property.
The sluggish growth was slightly below expectations of the market (0.7%) but identical to the first estimate given by the Government in late January.
The slowdown is very clear compared to the third quarter, where growth still appears to 4.9%. Over the whole of 2007, the United States grew by 2.2%, the lowest since 2002.
A gloomy data on growth has added the announcement of a sharp rise in unemployment registrations last week - with an additional 19,000 cases filed, they amounted to 373,000 - while the number of unemployed compensation exceeded the 2 .8 million in mid-February (the latest available figures).
This is the number of unemployed compensated the highest since October 2005, ie the period following the passage of Hurricane Katrina in October 2005.
"I do not think that we are heading for a recession, but there is no doubt that we are slowing down," said President of the United States during a press conference at the White House.
He suggested that a new plan for revitalizing the economy was not necessary after one adopted recently.
"Why not let the plan for the possibility of his action?" He commented stressing that it contained "more than 150 billion dollars in economic incentives growth-oriented".
NI STAGFLATION
Cary Leahy, an economist at Decision Economics in New York, said that the numbers of unemployed inscriptions were "disappointing".
"Claims are moving into territory close to the recession now that they are close to 375,000 moving average four months," says the economist.
"The claims of unemployment was one of the latest statistics still giving positive signals on the economy and they are also getting smaller."
Accordingly, Lehman Brothers economists have lowered their forecasts for job creation for the entire month of February. It do more than 15,000 net creation, instead of 35,000.
"Overall, this is in line with a slowdown that continues in employment, which will feed fears of recession in the United States," comments Omer Esiner, market analyst at Ruesch International in Washington.
In the fourth quarter, investment in residential property has collapsed by more than 25%, its strongest fall since 1981.
Consumer spending, which account for more than two-thirds of GDP, grew at an annual rate of 1.9%, compared with 2.8% in the third quarter.
All this against a background of rising prices than before. The price index of personal consumption expenditures excluding food and energy, the barometer of the Fed's favorite measure for inflation, showed an increase of 2.7% annual rate in the fourth quarter, in line with expectations and the first estimate, but with 2% in the third quarter.
The Federal Reserve chairman Ben Bernanke has estimated Thursday that the bulk of inflationary pressures was due to the rising price of energy and food. He hoped that these prices are stabilizing or slow to grow and said he did not believe a stagflation, ie to inflation in an environment of weak growth, as was the case in the United States there 30 years.
The gross domestic product (GDP) United States increased by 0.6% between October and December annualised rate, in part due to a drop in investment in residential property.
The sluggish growth was slightly below expectations of the market (0.7%) but identical to the first estimate given by the Government in late January.
The slowdown is very clear compared to the third quarter, where growth still appears to 4.9%. Over the whole of 2007, the United States grew by 2.2%, the lowest since 2002.
A gloomy data on growth has added the announcement of a sharp rise in unemployment registrations last week - with an additional 19,000 cases filed, they amounted to 373,000 - while the number of unemployed compensation exceeded the 2 .8 million in mid-February (the latest available figures).
This is the number of unemployed compensated the highest since October 2005, ie the period following the passage of Hurricane Katrina in October 2005.
"I do not think that we are heading for a recession, but there is no doubt that we are slowing down," said President of the United States during a press conference at the White House.
He suggested that a new plan for revitalizing the economy was not necessary after one adopted recently.
"Why not let the plan for the possibility of his action?" He commented stressing that it contained "more than 150 billion dollars in economic incentives growth-oriented".
NI STAGFLATION
Cary Leahy, an economist at Decision Economics in New York, said that the numbers of unemployed inscriptions were "disappointing".
"Claims are moving into territory close to the recession now that they are close to 375,000 moving average four months," says the economist.
"The claims of unemployment was one of the latest statistics still giving positive signals on the economy and they are also getting smaller."
Accordingly, Lehman Brothers economists have lowered their forecasts for job creation for the entire month of February. It do more than 15,000 net creation, instead of 35,000.
"Overall, this is in line with a slowdown that continues in employment, which will feed fears of recession in the United States," comments Omer Esiner, market analyst at Ruesch International in Washington.
In the fourth quarter, investment in residential property has collapsed by more than 25%, its strongest fall since 1981.
Consumer spending, which account for more than two-thirds of GDP, grew at an annual rate of 1.9%, compared with 2.8% in the third quarter.
All this against a background of rising prices than before. The price index of personal consumption expenditures excluding food and energy, the barometer of the Fed's favorite measure for inflation, showed an increase of 2.7% annual rate in the fourth quarter, in line with expectations and the first estimate, but with 2% in the third quarter.
The Federal Reserve chairman Ben Bernanke has estimated Thursday that the bulk of inflationary pressures was due to the rising price of energy and food. He hoped that these prices are stabilizing or slow to grow and said he did not believe a stagflation, ie to inflation in an environment of weak growth, as was the case in the United States there 30 years.
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