lundi 13 avril 2015
After big chill, US economy seen warming up
Posted on 02:23 by nice news
The first shoots of a spring bloom in the economy might pop up this week, but don’t expect fresh doubts about the pace of U.S. growth to melt away overnight.
Sales at retail stores and the construction of new homes are expected to show renewed vigor when the government releases its latest reports for March. Another survey of consumer sentiment is also likely to show Americans are fairly optimistic about the economy.
Wall Street is certainly eager for good news, particularly after a March employment report that showed the stingiest hiring in 15 months. The poor jobs report capped off a long streak of disappointing news on the economy.
The potentially good news, however, could be tempered by further evidence of softness among manufacturers. They’ve been hurt by a strong dollar that’s curbed the sale of U.S. exports as well as less demand for heavy equipment used to extract petroleum following the collapse in oil prices.
Industrial production, for example, is forecast to decline by 0.3% in March. The report, released Wednesday, will “be atrocious, with mining, utilities and manufacturing output all shrinking,” said Paul Ashworth, chief U.S. economist at Capital Economics.
The good news-bad news scenario means it will take at least a few more weeks, if not longer, to determine if U.S. growth is ready to sizzle after a harsh winter chilled the economy in the first quarter for the second year in a row.
“The question hanging in the air today: Is the current slowdown just another temporary blip, or are we in for a more prolonged slog?” said Scott Anderson, chief economist at Bank of the West.
Most economists, in the immortal words of Yogi Bera, see deja vu all over again. They expect a replay of 2014, when gross domestic product surged 4.6% in the second quarter after shrinking 2.1% in the first three months of that year.
The U.S. is expected to grow just 1.5% in the 2015 first quarter, revving up
Sales at retail stores and the construction of new homes are expected to show renewed vigor when the government releases its latest reports for March. Another survey of consumer sentiment is also likely to show Americans are fairly optimistic about the economy.
Wall Street is certainly eager for good news, particularly after a March employment report that showed the stingiest hiring in 15 months. The poor jobs report capped off a long streak of disappointing news on the economy.
The potentially good news, however, could be tempered by further evidence of softness among manufacturers. They’ve been hurt by a strong dollar that’s curbed the sale of U.S. exports as well as less demand for heavy equipment used to extract petroleum following the collapse in oil prices.
Industrial production, for example, is forecast to decline by 0.3% in March. The report, released Wednesday, will “be atrocious, with mining, utilities and manufacturing output all shrinking,” said Paul Ashworth, chief U.S. economist at Capital Economics.
The good news-bad news scenario means it will take at least a few more weeks, if not longer, to determine if U.S. growth is ready to sizzle after a harsh winter chilled the economy in the first quarter for the second year in a row.
“The question hanging in the air today: Is the current slowdown just another temporary blip, or are we in for a more prolonged slog?” said Scott Anderson, chief economist at Bank of the West.
Most economists, in the immortal words of Yogi Bera, see deja vu all over again. They expect a replay of 2014, when gross domestic product surged 4.6% in the second quarter after shrinking 2.1% in the first three months of that year.
The U.S. is expected to grow just 1.5% in the 2015 first quarter, revving up
After big chill, US economy seen warming up
Categories: After big chill, US economy seen warming up
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