United States Economy Analysis
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AP ECONS
October 2, 2013 US Economy Assignment Even with some temporary effects of extreme weather related events; America is recovering very well from the recession experienced in 2009. In the beginning of 2013, from the first to the second quarter, America’s GDP growth rate has increased to 2.5%. This is due to the increase of personal consumption, goods and services, and investments ("United States GDP Growth Rate." TRADING ECONOMICS. Joana Taborda, 26 Sept. 2013. Web. 10 Oct. 2013). House prices and construction activity has been climbing, labor market conditions have improved, and corporate probability is high. With the help of slow inflation, we can see more growth in the third and fourth quarter of 2013 (Text and Subtext Comments. JARED BERNSTEIN, 17 June 2013. Web. 10 Oct. 2013). In the graph on top, it shows the currency of the United States of America. We can see that since the beginning of 2013, there is an appreciation in the dollar value. The appreciation is a result of high demand of American goods and services which drives up their value. This can help America increase their imports of resources and products. With the increase of value in the American dollars, corporations have seen an increased flow of profits leading to a rise in their stock prices. With continuous changing of stock prices, some foreign countries or individuals may be interested in investing money in America’s stock market. (United States Stock Market (Dow Jones)." TRADING ECONOMICS. N.p., n.d. Web. 10 Oct. 2013.) Consumer sentiment index is used to determine the consumer’s opinion; whether to spend the money on products and services or save it. This can help the markets to produce products consumers will buy, so that the economy can grow. The University of Michigan recorded a decrease of consumer sentiment index from 82.1, recorded in August, to 77.5 in September. This is the third consecutive month that the consumer sentiment has declined. The
AP ECONS
October 2, 2013 US Economy Assignment Even with some temporary effects of extreme weather related events; America is recovering very well from the recession experienced in 2009. In the beginning of 2013, from the first to the second quarter, America’s GDP growth rate has increased to 2.5%. This is due to the increase of personal consumption, goods and services, and investments ("United States GDP Growth Rate." TRADING ECONOMICS. Joana Taborda, 26 Sept. 2013. Web. 10 Oct. 2013). House prices and construction activity has been climbing, labor market conditions have improved, and corporate probability is high. With the help of slow inflation, we can see more growth in the third and fourth quarter of 2013 (Text and Subtext Comments. JARED BERNSTEIN, 17 June 2013. Web. 10 Oct. 2013). In the graph on top, it shows the currency of the United States of America. We can see that since the beginning of 2013, there is an appreciation in the dollar value. The appreciation is a result of high demand of American goods and services which drives up their value. This can help America increase their imports of resources and products. With the increase of value in the American dollars, corporations have seen an increased flow of profits leading to a rise in their stock prices. With continuous changing of stock prices, some foreign countries or individuals may be interested in investing money in America’s stock market. (United States Stock Market (Dow Jones)." TRADING ECONOMICS. N.p., n.d. Web. 10 Oct. 2013.) Consumer sentiment index is used to determine the consumer’s opinion; whether to spend the money on products and services or save it. This can help the markets to produce products consumers will buy, so that the economy can grow. The University of Michigan recorded a decrease of consumer sentiment index from 82.1, recorded in August, to 77.5 in September. This is the third consecutive month that the consumer sentiment has declined. The