US authorities revise GDP growth
The US authorities have today revised downward an earlier forecast that the US economy grew by 2.4% in the second quarter of 2010. The new figure is 1.6% which is a significant revision although interestingly it was actually above the 1.4% consensus forecast from a recent Reuters survey. It is believed that the downwards revision was purely and simply because of a sharp increase in imports over the period.
The revised figure of 1.6% does not compare favourably to the growth in the previous quarter which was 3.7%. The facts and figures are there for all to see that we are experiencing a significant slowdown in the US economy, something which is likely to continue for the foreseeable future. While there is no talk yet of a double dip recession in the US, and indeed economic growth is well above that in the UK, if we see another quarter like the last quarter then alarm bells will start to ring.
The ramifications of the downwards revision in US growth in the second quarter have been felt around the investment world as the US economy is still the engine room of the worldwide economy. If we were also to see a similar slowdown in Europe and the Far East then investors would certainly become even more concerned.
Share this..
Related stories
Mervyn King issues warning on UK economy
Mervyn King has again fairly and squarely dashed hopes of a recovery in the UK economy in the short term. He has issued a warning this evening that UK workers need to brace themselves for further pay cuts, or pay freezes, in the short to medium term and confirmed that he believes the UK economy will struggle to grow until the UK budget deficit is addressed. There is widespread speculation that...
Read MoreGoogle announces record profits
Search engine giant Google has today announced net income of £1.4 billion in the third quarter of 2010 which is a 32% increase on the corresponding period last year. It seems that not only are the company's core search engine and advertising operations performing well but there has also been a significant contribution from recent acquisitions and new projects. Revenues for the third quarter in...
Read MoreBudget Headlines : UK Economy to fall by 3.5% during 2009
UK Economy to fall by 3.5% during 2009...
Read MoreIs British Airways breaking the Unite union?
There is concern within the union movement that British Airways has highlighted a number of cracks between Unite union members as the second British Airways strike gets underway. Despite the fact that the unions had hoped to bring the company to a standstill, British Airways believes that around 66% of scheduled flight will take off as normal during the strike period and it believes that more cabi...
Read MoreIs the UK Union safe?
The last few weeks have been nothing short of mind blowing with massive well known companies hitting the rocks, billion pound bailouts and probably more trouble further down the line. But what has this done to the Union? Has it strengthened the bond between England, Ireland, Scotland and Wales?
The truth is that aside from the SNP making noises in Scotland the Union was never reall...