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US Economy Records Third Quarter Growth

admin — Fri, 30 Oct 2009 16:29:25 +0000

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 get the wheels of the economy turning again by shoring up durable goods purchases.

The news shook the Dow Jones Industrial Average out of Wednesday’s slump, sending it up nearly 200 points at yesterday’s close.

Uk Economy Still In Recession

admin — Sat, 24 Oct 2009 08:20:21 +0000

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 anticipated growth of 0.2%. The economy shrank 5.2% from a year ago, a slight improvement from Q02 2009′s record 5.5% contraction. The UK continues to suffer from a fall-off in its vital services industry.

US Consumer Confidence Index Falls

admin — Thu, 01 Oct 2009 06:35:13 +0000

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, and the stability of their personal finances. It is obvious that the weak job market has taken its toll on consumers’ outlook.

OECD Releases Dismal Outlook

admin — Thu, 17 Sep 2009 17:40:51 +0000

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, and it estimates that as much as 10 million more could come next year, pushing the unemployment rate to 10%. The jobless rate among OECD countries was 8.5% in July, compared with 5.6% at the close of 2007.

Switzerland Displaces U.S. As World’s Most Competitive Economy

admin — Wed, 09 Sep 2009 13:57:02 +0000

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 the reason for the ‘cut’, and at the same time commended Switzerland’s stable economy and knack for innovation. On a separate note, the USD dropped to its lowest level in 2009 against the Euro, as the global market rallied on economic recovery hopes.

Hard Times In Chile

admin — Tue, 08 Sep 2009 21:02:51 +0000

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 GDP declined by 4.5%, compared to the same period a year ago, the largest fall-off in twenty years! Chile’s economy has been plagued by weak demand which led to the reduction in prices for its exports.

UK Economy Expected To Contract in 2009

admin — Fri, 04 Sep 2009 20:11:52 +0000

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 worse than the 4.5% decline the U.S. Treasury anticipated.

Unfortunately, this development will not allow an overly comfortable experience for Britain’s Finance Minister, who must meet his G20 counterparts in London soon.

Euro Zone Woes Continue

admin — Wed, 02 Sep 2009 20:02:07 +0000

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 unemployment rate across the 27-member European Union climbed to 9%, the highest level since 2005. Additionally, the story seems the same in Japan, where the unemployment rate hit a record 5.7% in July.

China’s Economy Recovering

admin — Wed, 02 Sep 2009 19:56:03 +0000

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 was helped by increases in output, new orders and imports. The positive data helped lift the Shanghai Composite Index, which closed up 0.6% yesterday, following a sharp sell-off on Monday.

Australian Companies Affected By Global Recession

admin — Tue, 01 Sep 2009 12:17:14 +0000

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%. Business inventories, which includes stocks on shelves and in warehouses, unexpectedly tumbled 3.4%, the biggest decline since record keeping started in 1985.