Friday, May 29, 2015

USA: Severe winter is shrinking economy – SPIEGEL ONLINE

The US economic growth has slumped from January to March. The gross domestic product (GDP) shrank at an annual rate of 0.7 percent, as the Commerce Department announced in Washington on Friday. Experts had widely expected the decline. Heavy snowfall had affected at the beginning of the business, in addition they were impacted by a strike of dockers on the west coast.

As apparent from the figures show, walked out of the weaker development, especially on foreign trade and the inventory of the company. Dollar strength currently inhibits companies, as this increase the cost of US products in world markets. Companies like Microsoft chart show and Procter & amp; Gamble chart show have already warned that the exchange rate pressure on their profits and sales. The household consumption was slightly weaker than expected.

The US Federal Reserve has given the clouded economic situation signaled that it will probably not make the targeted this year turnaround in interest rates in June. She holds the key rate since the end of 2008 at zero to 0.25 percent to stimulate the economy. Fed chief Janet Yellen said she consider the setback in the first quarter does not a trend, but temporary. However, if the growth in the spring do not pick up again, there the professionals for a good chance that the Fed will continue its moves expected for this year turnaround in interest rates.


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