Category: Economic Conditions

GDP Grows 2.2%, Missing Expectations

The United States saw GDP growth of 2.2% in the fourth quarter of 2014, below expectations of 2.4% growth in a sign that the country’s economic recovery is stalling.

The Commerce Department reported that the second estimate for fourth quarter growth was 2.2%, driven by “positive contributions” from personal consumption expenditures (PCE), nonresidential fixed investment, exports, state and local government spending, private inventory investment, and residential fixed investment. Imports also rose in the fourth quarter.

U.S. Durable Goods Plummet on Weakening Demand

Durable goods sales contracted in another sign that the U.S. recovery may be stalling.

Despite expectations of growth, durable-goods orders fell by 1.4% in February—the third decline in the last four months even as analysts expected a 0.2% increase in goods for the month. The Commerce Department also lowered estimates for durable goods orders in January, showing a 2% rise versus previous estimates of a 2.8% increase.

Transport Goods Plummeting

Federal Reserve Sees Below-Average Growth

The U.S. economy is growing at a lower-than-average rate, far short of expectations, as last-year’s optimism turns sour.

A new study by the Chicago Federal Reserve shows that economic fell 10% from January to February as the region’s National Activity Index (CFNAI) slipped to -0.11 from -0.10 in January. That marks the third month in a row of an economic decline, after extremely strong growth in September, October, and November of 2014.

U.S. Home Sales Weaken Despite Lower Rates

Mortgage interest rates are falling, but that is not encouraging more Americans to buy houses, especially in higher-priced urban markets.

According to Freddie Mac, 30-year mortgage interest rates fell to 3.78%, remaining near the lowest levels seen in the first half of 2013. Fifteen-year mortgages also fell on a week-over-week basis to 3.06, a fall of 1.3% from the prior week and 8.5% from a year ago. Thirty-year mortgages have fallen 12.5% from a year ago.

Monty Python Star Takes on Institution of Economics Education in New Documentary

Economics is, at its core, the study of diverse financial systems and how they interact. It attempts to make sense of the ups and downs of various markets, the buying patterns of consumers, and the impacts of politics on the money in people’s pockets. But, at its heart, the academic study of economics relies on certain core principles that have not greatly changed in several hundred years.

Falling Unemployment and Rising Wages No Longer Strongly Linked, Puzzling Economists

For six years, the US economy has grown. Unemployment has slowly dropped and overall the health of the American economy has returned to levels comparable to those before the housing boom and bust. Yet, in a turn that has left many economists scratching their heads, salaries have not risen in conjunction with the drop in unemployment as predicted.

Housing Starts See Sudden Decline Despite Employment Gains

A fall in unemployment rate has not caused more demand for residences, as housing starts suddenly declined in February.

Private housing starts fell to a seasonally adjusted annual rate of 897,000 in February, far below expectations of 1.04 million starts, according to a report released by the U.S. Census Bureau.

American Homebuilder Confidence Makes Surprising Drop in March

A recent report has found that homebuilders have lost confidence in the American housing market in March 2015. The drop has surprised many analysts who see the market on a long-term growth trend.