The U.S. economy picks up this spring unexpectedly, amid solid gains in consumer spending and business investment. The economy expanded at an annual rate of 2.8% the pace was faster than expected as the reports predicted that there would be a danger in economic expansion at an abrupt end but still the economy continued to do better than many other countries.
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The strong figure came out amid election campaigns going on in full force the repost may lean the the result of the election towards Democrats But the current situation isn’t as sweet as it seems as the unemployment rate stands at 4.1% which is low but is steadily increasing. Even if the price Inflation is successfully depleted the discontent remains elevated, as households show a 20% increase this year since 2021.
“There’s a lot of crosscurrents here, in terms of voters thinking about the economy,” said Mark Zandi, chief economist at Moody’s Analytics. “At this point, I don’t think it’s a headwind or a tailwind.”
Consumer spending which covers more the 2/3 of the economy peaked at a 2.3% rate and may slow down till the January- March quarter. Spending was encouraged because of increased outlays on services like healthcare, housing, and utilities as well as club memberships, visits to sports centers, parks, theaters, and museums, and gambling by the government.
Businesses also started spending on equipment, mostly aircraft, which surged at an 11.6 percent rate resulting by an increase in spending the consumers. In a statement, President Biden said the report “makes clear we now have the strongest economy in the world”. but the economy isnt that good to get his party back to the lead. Most analyst dosent expect any hage in economy but they sure do have hinge that it may weaken and U.s Central bank is expected to cut down intrest rate i effort to counter any more slow downs
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