The U.S economy expanded by 1.1% in the second quarter of 2016 (April - June), slightly less than the predicted 1.2% by economists.
One of the main reasons for this slow growth is due to businesses reducing their inventories and spending less on new infrastructure and equipment, however growth is expected to pick up in the summer and fall due to greater consumer spending.
The US economy has not been able to achieve over 3% economic growth on an annual basis since 2005, and since the financial crisis of 2008-2009, the economy has been decidedly sluggish.
Annual growth for 2015 was 2.6% compared to just 1% for the first six months of 2016, this slowdown can be attributed in part to economic instability in China and the strong dollar stunting the export market.
No comments:
Post a Comment