American economy gains pace

Economy - Akanksha Singh - Nov 30,2016

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us economy gains speed despite stock standstill

The economic “standstill” and “slowdown” during the presidential elections 2016, gave way to a steady growth rate of 3.2%

Amidst all the speculation and crass talk about how the U.S. market was at a standstill during the election and would face heavy losses in future, the U.S. economy surprised the critics after it grew 3.2% in the third quarter. The growth is a respectable high from the initially estimated rate of 2.9%.

This growth made the current financial quarter the best in two years, for the U.S. economy. The increased numbers are a result of a major, one-time increase in the exports section and a solid consumer spending, which usually makes up for the majority of the economic activity. The Commerce Department reported that, the consumer spending’s, accounting for more than two-thirds of economy in the U.S. soared at a rate of 2.8%, a better figure compared with the initial estimate of 2.1%.

However, strong growth numbers of the economy stand to be poles away from the apparent sluggish growth rate that the president elect Donald Trump kept talking in his election campaign speeches; he also swore to make the economy grow at an annual 4% rate.

The overall employment rate being 4.9% which is regarded as low.  Economists doubt that America could grow at such a pace since it will require a major worker influx. Another red was the fact that, there are no new business investments in buildings, equipment or any project for that matter. Spending’s on long term asset has been declining for four straight quarters and economists believe that the decline is indeed never fueled by the uncertainties surrounding the 2016 U.S. elections, but was a lack of confidence in the economy’s future.

Bringing in more good news the Atlanta Federal Reserve predicts that growth in fourth quarter, October-December, will be around 3.6%.