After four consecutive quarters of decline, the US Economy returned to growth in the third quarter of 2009. Between July and September, Gross Domestic Product expanded at an annual rate of 3.5%, beating economists’ forecasts of 3.2%. The Government’s stimulative policies, like the Cash-For-Clunkers program and tax credits for first-time home buyers, seemingly helped to [...]
Despite hopes for an end to the recession, the United Kingdom Office of National Statistics reported yesterday that the UK economy fell into recession for a sixth straight quarter, making it the longest downturn on record. The UK’s third quarter domestic Gross Domestic Product (GDP) declined by 0.4% from the previous quarter, thwarting hope for [...]
The US Consumer Confidence Index fell for the third consecutive month, declining to 53.1 in September (from a revised reading of 54.5 in August). Currently, the index stands at almost 50% below the historic average of 94.8. This latest economic data signals that Americans remain deeply concerned about the worst job market in 26 years, [...]
As stock markets advanced around the world yesterday, the Organisation for Economic Co-operation & Development (OECD) released a dismal outlook. The OECD said that the global recession would cause 25 million persons to lose their jobs if the global recovery is unable to garner momentum. There have been over 15 million job losses thus far, [...]
The United States received an unfamiliar blow yesterday, as the World Economic Forum displaced it as the world’s most competitive economy, replacing it with Switzerland. This is the first time that the US has lost the top spot since the index was created in 2004. The Forum cited the United States’ fragile financial markets as [...]
Chile, South America’s fifth largest economy, has certainly not been spared by the effects of the global recession. Chile’s Central Bank reported yesterday that the country’s GDP shrank 2.7% in the twelve months through July, recording its ninth consecutive year-on-year contraction. This news comes just about three weeks after Chile announced that its second quarter [...]
The Organisation for Economic Co-operation and Development (OECD) came bearing good news for the global economy, except -that is- for the UK. The OECD expects global growth to rebound more quickly than it initially forecasted, but added that the UK economy would contract by 4.7% this year, worse than its previous expectation of 4.3%, and [...]
Despite reporting a smaller-than-expected second quarter economic contraction, the woes continue for the 16 countries that form the Euro Zone. The region’s unemployment rate rose to a seasonally adjusted rate of 9.5% (15.1 million people) in July. This is the worst monthly percentage figure the Euro Zone has seen in about 10 years. Additionally, the [...]
An expansion of China’s manufacturing sector has added to indicators that a sustainable recovery is on the horizon for the world’s number 3 economy. According to the China Federation of Logistics & Purchasing, China’s Purchasing Managers’ Index (PMI) rose to a 6-month high of 54.0 in August, from July’s 53.3. The improvement in the sector [...]
The global recession continues to affect companies “down under”; according to a report that business profits dived the most since 2003 in Q02 2009. Gross operating profits dropped 7.8% in the second quarter to AUD49.69B. Among the hardest hit were mining companies, which posted a 24.7% plunge in profits. Likewise, wholesalers saw earnings slip 12.6%. [...]