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The employment and consumption crisis nails US GDP to 1,3%

A performance below expectations for the US economy. In addition to cutting costs, other interventions to support the labor market are urgently needed.

The employment and consumption crisis nails US GDP to 1,3%

US GDP grew by 1,3% in the second quarter of the year. A result that disappoints the expectations of analysts who expected a 1,8%. The data released today by the Department of Commerce bear witness to a slowdown in the American economy which, if compared with the performance offered just a few months ago, appears rather abrupt. In fact, the system went from the 3,1% recorded in the last quarter of 2010 to 0,4% in the following three months, finally settling on the present 1,3%. A result never recorded, even after the start of the crisis. The ballast is consumption, recorded at a level of 0,8%, lower than expected.

 

In short, the data suggest that, in order to revitalize the country, the much-sought-after reduction in spending at the center of the political debate these days will not be enough, but rather it will be necessary to make a serious effort to cure the ills of the labor market. Moreover, employment remains the only driving force available for the relaunch of consumption, which alone makes up about two-thirds of the world's largest economy.

 

Another relevant value disclosed today is that of the deflator – ie the price index of all new goods and services produced in the economy – which increased by 1,3% against the 1,7% expected. Also in this case the figure was found to be lower than the estimates. The labor cost index increased by 0,7%, against expectations which assumed growth of 0,5%.

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