After the viciously cold winter has faded, the US economy is finally seeing improvements. It is expected that the economy will get better and will be able to make a rebound in the coming months. This is great news to a lot of Americans who are hoping to recover from the unusually cold winter.
After suffering from a long cold winter, the US economy is starting to get back on track and is showing improvements in terms of GDP growth.
According to a report from reuters.com, the GDP growth report last January to March were actually overstated and the economy was in a bad shape due to the extreme cold. But since asset prices are gaining value, it is expected that the US economy will be able to kick start again.
- Business Confidence
The growth in the economy can be seen by the rise in business confidence. More people are getting positive on doing business and investing on business in the US, which greatly helps with the faster recovery of the economy.
Investment intentions also back up the assumption that the economy is gaining back its strength and is ready to make a good rebound.
- Lower Unemployment Rate
The unemployment rate has also declined, which indicates that there are more people with jobs. Nonetheless, the inflation rate is slow, making rise in wages slower. This could mean that wage hikes will have to wait for a while before they can be implemented.
With an increase in job openings in the month of April, it is expected that more people will be able to provide more resources to families, improving financial situation of a household.
- Stronger Consumption Power
Since stronger financial situations are being observed in households, savings rates will be lower. This means that there will be more money circulating from purchases of the masses, which would help stimulate economic growth.
Improved competitiveness and lower energy costs are also some of the factors that can help the economy grow faster. These factors will help indicate that the economy is more stable since energy consumption is not going to be an issue in the near future since the costs are not that big.
- Higher Economy Growth Rate
From 0.1% economic growth in the past quarter, the UC economic growth is expected to rise and hit 2.6 percent this 2014. It is still expected to boost and hit 3.5 percent by next year. Hence, the economy of the US is expected to recuperate by next year.
The US economy had suffered a lot since the very cold winter had hit it since January. But since the economy is seemingly improving well, the economy can gradually pick itself up.
The employment rate and house prices, which are getting better and better, are good signs that the US economy is still aiming to stay as the largest economy in the world, toppling over China, which is poised to replace the US as the largest economy in the world.