Analysis of US Economy

The United States of America is considered the largest and one of the most important markets in the world in respect of economy. It is normally controlled by consumers but often troubled by high debt levels. It is a globally accepted fact that the US has the largest economy. Let’s take a closer look at the analysis of the US economy.

After world wide survey, according to the CIA World Fact Book 2007, the US GDP is considered to be $13.84 trillion.  As a result of the quick economic growth in China, it is forecasted to overtake the US GDP within the next three decades. Of late failure in the US housing project and credit markets have caused in gradual slowdown in the US Economy.

US Economy is mainly based on freedom of the private sector. The economic freedom of the private sector is combined with the relatively low level of regulation and government involvement and a court system that generally protects properly rights and enforces contracts. The US is very rich in natural mineral resources both metallic and non-metallic and a very fertile soil for agriculture and the country is fortunate to have a moderate climate. Besides these advantages, the country has very extensive coastlines on both Pacific and Atlantic Oceans as well as on the Gulf of Mexico which helps export and import system. Besides very long coastlines, it has many rivers, great inland lakes along the US Border with Canada which provides shipping access. The vast waterways are of great help and shape the country’s economic growth over the past several years and also integrate America’s 50 individual states into a single economic unit.

Throughout the history, analysis of the US economy has shown steady growth in labor force, which is a result of constant US expansion. The high wages brings many highly skilled workers from around the world to US together with skilled workers from different parts of the world.

ANALYSIS OF US ECONOMY NEWS RELEASES

MASS LAYOFFS (Monthly)
In February, employers took 2769 mass layoff action involving 295,477 workers. Mass layoff events increased by 542 from January, and initial claims increased by 57,575. Layoff events for all industries and for the manufacturing sector rose to their highest levels on record. Thirty states reached program highs in average weekly initial claims.

EMPLOYMENT SITUATION OF VETERANS
The unemployment rate for the 22.4 million veterans of the US Ar med Forces was 4.6% in 2008. The jobless rate for the nearly 1.7 million men and women who have served in the US Armed Forces since September 2001 was 7.3%.

CHANGE IN REAL AVERAGE WEEKLY EARNINGS, JANUARY 2009- FEBRUARY 2009
Real average weekly earnings fell by 0.3%from January to February 2009 after seasonal adjustment.
US ECONOMIC  ANALYSIS FORECASTING

Prediction about the direction of the US Economy in the short and long term is crucial factors in determining federal government policies, business decisions, and Federal Reserve decisions. Several Institutions make economy predictions and analysis of the US economy including Global Insight and the UCLA Anderson Forecast.

Read more US Economy Stock News blog by Ryan