Posts Tagged ‘rate’
US economic growth revised upwards for Q2
The Commerce Department has revealed the world’s largest economy grew by 1.3% on an annual basis in the April to June period – higher than an initial estimate of 1%.
The figure was also slightly higher than analysts’ expectations of 1.2% and follows a 0.4% growth rate in the first quarter of the year.
The upward revision was attributed to higher exports and strong spending and is the final figure for the second quarter.
For the first six months of the year, the economy expanded by 0.9% – this represented the lowest rate of growth in over two years.
Third quarter growth figures will be available next month and analysts are predicting an annualised growth rate of around 2%.
The US economy is struggling on the back of high unemployment and a depressed housing market.
Earlier this week, Federal Reserve Chairman, Ben Bernanke, warned that the US economy is facing a national crisis due to its high unemployment rate, which currently stands at 9.1%.
Earlier this month, the US Labor Department revealed the economy added no new jobs last month, which was a surprise after markets had expected 70,000 new jobs.
This represented the first time since 1945 that there has been a zero payrolls figure after 17,000 jobs were added in the private sector last month but these were cancelled out by 17,000 jobs lost in the public sector.
Mr Bernanke is urging the Government to assist the long-term unemployment and suggested that Congress should take more action to address the issue.
Earlier this month, President Barack Obama addressed the nation about a plan for job creation. He unveiled a $450 billion (£282 billion) package aimed at boosting the economy and reducing the federal deficit.
The bill includes tax cuts to workers and small businesses to boost job creation.
Mr Obama has previously said job creation is a top priority; continued high unemployment could threaten his prospects for re-election next year.
In the meantime, Mr Bernanke urged policymakers to introduce “housing policies” to boost the property market, which is currently struggling and many have suggested it is holding back the recovery.
Demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.
UK unemployment up to 2.51 million
The Office for National Statistics (ONS) has today revealed UK unemployment rose sharply in the three months to July – the biggest rise in almost two years.
The ONS said unemployment rose by 80,000 in the three month period to 2.51 million – far higher than the 70,000 expected by economists.
The latest figures take the unemployment rate to 7.9% – however, this was in line with forecasts.
In comparison, unemployment in the US stands at 9.1%, Japan’s unemployment rate is 4.7%, while in the euro zone, it is 10%.
Youth unemployment also grew sharply, by 78,000 to 973,000.
Meanwhile, the number of Britons claiming jobseeker’s allowance (JSA) rose for the fourth consecutive month in August, by 20,300, to 1.58 million – however, this was slightly less than forecasts.
Average earnings, meanwhile, rose by 2.8% between May and July, up by 0.1% over the previous month, with weekly wages now averaging £464.
The number of people in employment in the economy fell by 69,000 in the three month period to 29.17 million – the biggest drop since March 2010, according to the ONS.
Furthermore, the public sector workforce fell by 111,000 in the three months to June – the largest fall since records began.
However, an increase in private sector employment of 41,000 partially offset the drop.
Employment Minister Chris Grayling described them an “unwelcome set of figures”.
The figures suggest the labour market is coming under immense pressure from public spending cuts.
The spending cuts have been described as the biggest for decades; however, Chancellor George Osborne has deemed them necessary in order to bring the budget deficit down.
Some experts have even suggested they could push the economy back into recession.
China’s inflation rate eases in August
Inflation in the world’s second largest economy eased last month after reaching a 3-year high in July.
According to the National Statistics Bureau, consumer prices rose by 6.2% in August on an annual basis, compared with 6.5% the previous month.
Several other economies throughout the world are battling with higher inflation, particularly in Asia, which are the result of soaring food costs.
A report published yesterday showed global food prices are hovering near an all-time high, according to the UN Food and Agriculture Organization (FAO).
The index hit a level of 231 points in August – a rise of more than a quarter compared with the same period a year ago.
Back in February, the index hit an all-time high of 238 points.
China’s Government has made several attempts to contain prices and it has previously said it will make reining in prices its top priority.
The People’s Bank of China has hiked interest rates several times in the last twelve months in a bid to tame inflation – measures which several other Asian countries have adopted.
Analysts now believe inflation has reached its peak and will fall back during the remainder of the year as policy measures take effect.
Inflation fears are always a concern to Chinese officials due to the potential for price rises to trigger civil unrest.
However, despite the fall in consumer prices, analysts still believe the Government needs to do more to contain rising prices.
According to one economist, the fall in inflation was attributed to a moderation in pork price rises.
However, the news lifted Asian markets with Hong Kong’s Hang Seng Index adding 0.2%, while the Australian ASX Index was 0.2% higher.
However, Japan’s Nikkei Index lost 0.3% after date revealed the economy performed worse than originally thought in the second quarter.
In the meantime, separate figures released today show Chinese industrial output rose 13.5% in August on an annual basis, albeit slower than July.
US unemployment rate holds steady at 9.1%
According to the Labor Department, the world’s largest economy added no new jobs last month, which was a surprise after markets had expected 70,000 new jobs. This represented the first time since 1945 that there has been a zero payrolls figure after 17,000 jobs were added in the private sector last month but these were [...]
US unemployment rate edges up to 9.2%
The Bureau of Labor Statistics has today revealed the unemployment rate in the US rose in June to 9.2% from 9.1% in May. According to the Bureau, the number of new jobs created in the world’s largest economy last month represented the lowest in 9 months. The economy created just 18,000 jobs in June – [...]