The wealth of U.S. households increased by 943 billion USD in the first quarter of 2011, after rising stock prices have offset the decline in housing prices. The net wealth of households and nonprofits increased by 6.8% yoy to 58.1 trillion. dollars after growth of 19% for the previous three months, according to the Federal Reserve. Furthermore, U.S. households have reduced their duties for the 12th consecutive quarter. The growth of 5.4% of index Standard & Poor’s 500 in the past quarter of Americans supported the wealth that remains below the levels before the recession. The decrease of the indexes ofweak housing market and rising unemployment during the current quarter may mean that households will continue to save and reduce debt. Since reaching a five-year low of 49.4 trillion. dollars in the first quarter 2009 net wealth grew by 8.7 trillion. This is a 7.7 trillion. dollars below the record high of 65.8 trillion. dollars, reached in the second quarter of 2007, six months before the recession. The value of financial assets of Americans, including stocks and investments of pension funds increased by 1.16 trillion. dollars in the first quarter, according to the data. The property values, however, decreased by 298.5 billion dollars.
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The reduction in unemployment over the past two months is an encouraging signal, said today the President of the U.S. Federal Reserve Chairman Ben Bernanke. But he warned that it would take several years to recover normal levels of employment. In a speech to the Budget Committee to the House of Representatives Bernanke told The Associated Press, also warned that failure to develop a plan to reduce the budget deficit of 1 trillion. dollars in the long run could harm the economy. In January, unemployment in the U.S. marked level of 9 percent after the most rapid decline of its two 53. This fall “gives some grounds for optimism about jobs,” said Bernanke. The Fed chairman noted that unemployment remains too high. In his labor market is improving, but slowly. The central banker said that the economy has recovered just over 1 million lost by more than 8 million jobs during the worst recession in generations. According to Bernanke unemployment is likely to remain high for some time. The central banker urged Congress to act now to reduce the budget deficit to not have at a later stage to take “painful” measures under pressure from the markets. Ben Bernanke has denied any inflationary pressures in the U.S. economy and protect liberal monetary policy the central bank.
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The unemployment rate in the U.S. is expected to remain well above 7 percent by the end of 2012 and throughout the term of the current U.S. president Barack Obama. It said Federal Reserve Chairman Ben Bernanke before Congress, said New York Times. He will need time to recover all the 8.5 million jobs, removed during the recession in the U.S. in 2008 and 2009. Ben Bernanke is concerned that the economic outlook and financial conditions in the country remain unusually uncertain, and warns that the fiscal crisis in Europe has become an obstacle to economic growth in recent months. Speaking on the occasion of his presentation was a semi-annual monetary policy report to the Federal Reserve to Congress. Analysts say his tone is become much more cautious than the presentation of the last report in February. Bernanke confirmed in his speech that the economic expansion that began in mid 2009, continues but with lower rates. That contributes significant support from governments and central banks with their common fiscal and monetary policy. He expects that the growing demand of households and businesses will help sustain growth, despite incentives from the government will have less effect.
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The unexpected increase in new applications for unemployment benefits in the U.S. last week renewed fears about the state of the labor market and the recovery of U.S. economy. As a result, all three major indexes on Wall Street took down sharply in early session today. From the sale of shares suffered most manufacturers of durable goods, including Caterpillar, Boeing, Honeywell and Deere. Their share dropped by over 1% in morning trade. The index of 30 largest and often traded U.S. companies Dow Jones IA decreased by 0.7% to 10 338.19 points an hour after the start of the session. The broader S & P 500 lost 0.6 percent to 1 107.61 points and Nasdaq Exchange main index Nasdaq Composite fell by 0.7% to 2 291.05 points. All three stock closed yesterday Measure volatile session of the neutral zone after repeatedly changed its direction of movement. The series of U.S. economic data today showed that prices of consumer goods fell for the second consecutive month in May, and initial unemployment benefits rose unexpectedly last week. Meanwhile, it was clear that the growth of imports at the beginning of this year has increased and the negative balance on current account of the country to 109 billion dollars in the first quarter. Shortly thereafter came the data for the index of leading indicators, which predicts the development of the U.S. economy in the future. He rose for the 13th time in 14 months, adding 0.4 percent on a monthly basis in May after April remained unchanged.
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Most of America States decreased unemployment in April compared to March, according to government figures published today. In 34 states and the Federal District of Columbia, which is located Washington, DC, the unemployment rate decreased from the previous month. Only six state unemployment rises, but 10 others remained unchanged according to Ministry of Labour of the USA. In the March 24 state reported an increase in unemployment compared to February, reports CNBC. Overall the country, unemployment has risen to 9.9 percent in April from 9.7 percent in March, although employers in April showed 290 thousand new jobs – the highest rate of four years. The highest unemployment rate in Michigan (14%), followed by Nevada (13.7 percent), California (12.6 percent) and Rhode Island (12.5 percent). Lowest it is in North Dakota (3.8 percent), South Dakota (4.7 percent) and Nebraska (5%). The decreasing of the unemployment rate is good sign for recovering of the economy and business.
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The Russian economy grew in the first quarter of this year for the first time since 2008 thanks to the recovery of this industry and services, and improving labor market. On an annual basis for the first quarter GDP grew by 0.5 per cent since the fourth quarter of last year declined by 2.6 percent, data show the indicator for the economy of VTB Capital – the investment bank unit VTB. Only in March the Russian economy grew by 1.1 per cent growth from 0.5 percent in February, the index shows. Increased demand for raw materials and larger consumer spending helped the country to escape from its worst recession since the collapse of the Soviet Union. According to official statistics in the fourth quarter the economy shrank by 3.8 percent annually after a decline of 7.7 per cent in the third. For the year reported a decrease in GDP by 7.9 per cent. According to data from the state rail operator transporting goods by rail, which is considered indicative of changes in industrial production jumped by 12.7 per cent yoy in the first quarter. In February retail sales increased by 1.3 per cent annually, while unemployment fell to 8.6 per cent from 9.2 per cent. Capital investment and unemployment are “weak links” in the restoration, said last month, Deputy Economy Minister Andrei eyelid. VTB Capital indicator calculated on the basis of surveys of business conditions in manufacturing and services sectors.
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Too often people of baby boom generation in the United States have been accused of remaining too long at work before retiring, and thus deprive others of the opportunity for career development. But such charges now rather looks as unjustified outburst of anger. New research reveals that in 2018 the United States would actually have a labor shortage. “If the people of baby boom generation retire at the same age as current retirees, the next generation will probably be too small to fill up all the projected new jobs,” says Barry Bluestone, a professor at Northeastern University and author of a report on workforce United States. The report, “After recovery: we need help” is based on projections for population growth based on official statistics and outlook for the labor market in the United States. History shows that after the restoration of an economy from recession appears shortage of manpower. This happened after World War II and in the early 60’s. And since this recession is considered the worst of days since the Great Depression, similar processes are expected to occur over the next ten years, the report said. The authors of the document, however, emphasize that such shortages will be felt only after two – three years. According to the survey data between 2008 and 2018 in the United States will be created 14.6 million jobs outside the agricultural sector and at the end of that period probably 5 million of them are inactive.
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The former Federal Reserve Chairman Alan Greenspan said the U.S. believes that America does not need a new plan to stimulate the economy. Moreover, the specialist believes that before it comes to positive news about the labor market, unemployment in the country probably will reach 10 percent. Greenspan indicates that there are at least two reasons not to consider ideas for developing a new rescue plan. One is that only 40 percent of the projected under the current plan funds were allocated to the economy. Others relate to the debate on the effectiveness of such plans and disputes whether they are needed, writes Market Watch. The specialist believes that, some signals to improve the economy of the country. However, labor markets remain under pressure and unemployment will likely continue to grow in the short term, Greenspan believes.
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