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Showing posts with the label U.S. economy

U.S. CEOs Optimistic About the Economy and Plan on Hiring

America is pulling ahead as CEO's project a much brighter future with more hiring and greater investment. According to a report by the Young President's Organization (YPO) the U.S. bucked trends of other nations by raising their confidence index from 64.2 to 65. This optimism is a full two points above other countries and has prompted some positive decisions in company strategic planning that will bode well for the American worker. Net importers of oil were more optimistic than net exporters. The reason this is the case is because exportation of a natural resource can be lucrative but is also unsustainable and limited. Those nations that reaped the rewards in the past may find their economies struggling now that prices are changing and demand is less. Importing nations find the cheaper oil prices an advantage for their production and economy through lowered input costs. The report had three interesting expectations over the next 12 months that include: -70% Sales to In

Treaties that Foster Economic Growth and American Values

Treaties determine what type of international commercial activity is likely within a country. The design of these treaties can determine the access to raw materials, investment opportunities, and export opportunities. Countries like the U.S. can develop stronger treaties that are more advantageous to an export market while ensuring that American values are important to partnering countries. Developing countries are regularly looking to attract investment. Investment money is used to fuel their economies, fill government coffers, and create a connection to a larger world. Because of America’s strong economic position it has the capacity to create more advantageous treaties (Chikere Azubuike, 2013). The value of these investments puts the U.S. in a better bargaining position than the other country(s). This position of power is not necessarily a bad thing. When done well it can help the U.S. fuel its economic hubs for greater development. Such hubs rely on natural resources a

Does Improvements in Consumer Sentiment and GNP Indicate Future U.S. Growth?

The University of Michigan recently announced improvements in consumer sentiment from 80 in March to 84.6 in September ( 1 ).   Consumers who have been frugal with their pay checks over the past may now be willing to open their wallets. Increased consumer spending matched with improvements in Gross National Product (GNP) could be a good sign for the economy.  Consumer sentiment and sales are two different things but certainly positive impressions today can lead to increased sales tomorrow.   According to Gelper, et. al. (2007) positive consumer sentiment is followed by increased purchases of products and services in the trailing 4-5 months. They argue that consumer sentiment maintains some predictive power over consumer spending.  Another complementary announcement by the Commerce Department posted a rise in Gross Domestic Product (GDP) to 4.6% ( 2 ).   Positive GNP numbers were realized from personal consumption expenditures, exports, private inventory investment, state a

GDP Improves 4% in Second Quarter

The winter chill has thawed and the economy has rebounded 4% in the second quarter surpassing the governments expectations by 3%. In a spat of heightened economic activity improvement marks a continued trend of increasing economic gain after one of the nation’s worst recessions. The numbers provide some relief for those worried about the previous quarter’s retraction. “ Today’s advance estimate of real GDP is a positive signal that our economy is continuing its steady rebound ,” stated U.S. Secretary of Commerce Penny Pritzker. She also highlighted that it is necessary to continue work to ensure the rebound is long lasting.  The plan is to encourage “ more companies to export, increase foreign direct investment in the United States, strengthen regional manufacturing and economic development hubs, ensure workers have the skills to find jobs businesses need to fill, and unleash more of our data, all of which helps businesses grow and create American jobs .” The numbers a