A slight U.S economy growth leading to a financial moderation


The report released on Friday regarding the GPD shows that last year’s fourth quarter was dominated in the sector of economic growth by the inventory building. The inventory building represented two thirds of the U.S. economic growth.

The UniCredit Research New York chief economist, Harm Bandholz, says that the consumer spending is the main reason of the U.S. economic growth. The car sales are the ones that pushed the U.S. economy starting with 2010, when an increased was registered in the domain.

An official report regarding the first GDP fourth quarter will be released on Friday, at 8:30 AM (1230 GMT) by the Commerce Department.

The report is expected by specialist to clear the dusty situation of the economic state, describing details of the home construction field. The unusually warm winter led to a rise in the home construction industry, which contributed to the first fourth quarter’s economic state.

The growth registered in the home construction field might be enough to reduce the odds of the Federal Reserve’s purchases of bonds. When the economic crisis began, the Federal Reserve started purchasing bonds in an attempt of lifting the economy. Even though a slight economic growth has been registered in certain months, the Fed policy doesn’t eliminate the idea of purchasing bond if the economy restarts to deteriorate.

The motor vehicle sales have registered the biggest rise of the last four years, as Americans stepped up and started throwing away more money on automobiles. Unfortunately, the Japan tsunami showed its effects in the disrupting of supplies, which led to a lack on the market of popular models.

If the economic growth expectations of the first quarter will continue to be felt, the growth in job demand will continue to be felt. The first two months of this year have been successful for unemployed, as the demand for work force has been bigger.

Overall, the situation seems to moderate and after the inflation will be adjusted, the economic boom will show its important results.