After the US Jobs data proved to be disappointing last week, the investors will be looking for clues that the economy is not as weak as it appears as of now. In the upcoming week the economic data are coming out and investors will be closing looking at the same. The second-tier reports for the customer confidence is on the tap along with wholesale inflation, US exports and imports and consumer credit.
The slowdown in the economy while the third quarter gets underway, is more than evident now. Jobs addition for the second quarter was down from 226,000 to 75,000 a month on an average for the first three months of the year. The gross domestic product is also being expected to decline from the mediocre rate of 1.9 % it had in the first quarter.
As the US economy tries to make its exit from the recession of mid-2009, the recovery path for the economy has been strewn with bumps. The growth has been marked with fits and starts and there has always been a threat of a downturn lingering.
The economy has been limping along and the kind of growth was being expected at this stage of expansion is no where to be seen. And the limp in the economy is unlikely to straighten out the gait in near future.
The ever so long financial crisis in Europe and the slowdown of the economy in China is also beginning to weigh on the US economy and there is a divided opinion in the state over how to boost growth and hiring in the country. There has been a long status quo on the lackluster rate of hiring and a sluggish expansion in the US that has been unable to lower the dramatic jobless rate of 8.2 per cent.
As the consumers are starting to cut back on their spending and are trying to rebuild their savings after the splurge in the winters, the US economy is not growing at an expected pace. The consumer credit report coming out for the month of May in the next week, will give a further insight into whether or not the Americans are scaling back.