A Report on the Performance of the American Economy for 2016 to 2017
Uploaded by shawpaw2 on Nov 15, 2017
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A Report on the Performance of the American Economy for 2016 to 2017
The Gross Domestic Product in America grew with 2.8% in the 3rd quarter, which is an implication of economic stability. However, the nation would experience a fall in the index in the subsequent two quarters. The fall in the 4th quarter was an unstable economy as long as it is below 2%. The economy made a rebound in the 2nd quarter in 2017, which was 3.1% from 1.2%. Economists associate the response to the solution to the hurricane disasters in America.
Figure 1: The GDP record by the US Depart of Commerce
The figure is an illustration of the rise in the GDP in the quarters of 2016 that follows a fall in the second half of a business year. Therefore, the GDP is bound to grow in the last quarter of 2017 after the economic shock following the disruption in weather conditions as a lead to the first half of 2018 (Borissov and Hellier).
The retail sales in the 3rd quarter were 0.9%, which shows a low performance in the consumer goods in the market. The prices went to a depression in the 1st and 2nd quarters with 1 and 0.3% respectively. However, companies had reached a peak in the 4th quarter of 2016 with 1.5% increase, but came back to 0.9% in the 3rd quarter of 2017.
The number of existing homes sales increased for the three periods with 16140, 16640, and 16860. The government lowered the mortgage rates to enable the population to recover the losses from the weather condition. They may have increased the rates in the 2nd quarter of 2017 as the numbers reduced to 16690 and 16180. The case may mean that the population has made settlements that may influence economic activities.
America maintained a consistent figure in the amount of new car sales. The sellers increased their volumes in the 4th quarter in 2016 from 53 to 54 million. The consistence may be the reason for the GDP stability in the period. On the other hand, the sales decreased with 1 million for every period. The sales have increased in the 3rd segment 2017, which affirms growth in the GDP.
The consumer sentiments were lowest in the 3rd quarter of 2017. Nonetheless, they reached a peak in the 4th quarter that correlates with the...