U.S. Economy

The U.S. is the world’s largest national economy. In 2013, the U.S. reported gross domestic product (GDP) of $16.8 trillion, or 22.4% of global GDP. China was a distant second at $9.2 trillion. Japan’s economy was the third largest in 2013 at $4.9 trillion, with Germany ($3.6 trillion) and France ($2.7 trillion) rounding out the top five.

The U.S. is also the second largest economy by region. In 2013, U.S GDP of $16.80 trillion was just slightly behind the entire European Union at $17.35 trillion.

As the world’s biggest national economy the U.S. is also its economic engine. That’s because the U.S. is the largest consumer market in the world. In 2013, consumer spending accounted for 71% of the U.S. economy.

As goes the U.S., so goes the global economy. Since the stock market crashed in 2008, U.S. economic growth has been weak. In 2008, the U.S. reported negative GDP of -0.03%; in 2009, it slipped further to -2.8%. Since then, the U.S. economy has experienced uneven growth. Most recently, in 2013, the U.S. reported GDP growth of 1.9%.

Going forward, the International Monetary Fund (IMF) has cut its outlook for global economic growth, saying there are limits to the United States’ ability to shoulder the world’s economy on its own. Before the financial crisis, the U.S. routinely advanced at around 3.0% annually. For 2014, the IMF expects GDP to grow 2.2% and in 2015 it expects the U.S. economy to advance 3.1%.


Recession in Late 2015 a Strong Possibility as U.S. Economy Slows at Alarming Pace

By Friday, May 22, 2015

Recession in Late 2015Is the U.S. economy getting close to a recession? Rising business inventory and slowing consumption say yes.In these pages, I have argued over and over again that consumption data is important; it’s the biggest part of the U.S. gross domestic product (GDP) calculation. And, currently, consumption in the U.S. economy is stalling. Read More

U.S. Economy Faces Budget Crisis in 32 American States

By Thursday, May 21, 2015

U.S. EconomyWe are frequently told that the U.S. economy has recovered from the Great Recession of 2008 and 2009. However, according to a recent report, 32 states still face budget gaps in fiscal 2015, 2016, or both. (Source: Reuters, April 27, 2015.)Does a Revenue Problem Mean Higher Taxes in the Future?The fact that a majority of states are facing. Read More

U.S. Economy Looks Gruesome; More Misery to Come

By Tuesday, May 19, 2015

U.S. EconomyThe U.S. economy is slowing down. Even the Organization for Economic Cooperation and Development (OECD) said U.S. growth is lagging and an economic slowdown shouldn’t be ruled out.The OECD’s leading indicators are designed to anticipate economic changes whether the economy is expanding or slowing down. The OECD expects the. Read More

Full Employment in the U.S. Economy; Why It’s Just Another Bogus Statistic

By Monday, May 18, 2015

Full Employment In US EconomyAccording to David Doyle, an analyst at Macquarie Capital Markets, the U.S. economy could reach full employment within a year. My question is: is this all we need in order to say the U.S. labor market is strong? (Source: Bloomberg, May 14, 2015.)U.S. Economy: How Full Employment Is PossibleDoyle’s method first estimates the number. Read More

U.S. Economy in Recession Already? Business Inventories Piling Up

By Thursday, May 14, 2015

U.S. Economy in RecessionIs the U.S. economy in more trouble than we realized? On Wednesday, May 13, the U.S. Census Bureau released the March 2015 Manufacturing and Trade Inventories and Sales report. Sales for March are down 2.1% compared to the same period last year. Business inventories are up 2.9% year-over-year.The total March business inventory-to-sales. Read More

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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