Al Khaleej stuns Al Hilal with 3-2 victory, ending 57-match unbeaten run    Turki Al-Sheikh crowned "Most Influential Personality in the Last Decade" at MENA Effie Awards 2024    Saudi Arabia arrests 19,696 illegals in a week    SFDA move to impose travel ban on workers of food outlets in the event of food poisoning    GACA: 1029 complaints recorded against airlines, with least complaints in Riyadh and Buraidah airports during October    CMA plans to allow former expatriates in Saudi and other Gulf states to invest in TASI    11 killed, 23 injured in Israeli airstrike on Beirut    Trump picks billionaire Scott Bessent for Treasury Secretary    WHO: Mpox remains an international public health emergency    2 Pakistanis arrested for promoting methamphetamine    Move to ban on establishing zoos in residential neighborhoods    Moody's upgrades Saudi Arabia's credit rating to Aa3 with stable outlook    Al Okhdood halts Al Shabab's winning streak with a 1-1 draw in Saudi Pro League    Mahrez leads Al Ahli to victory over Al Fayha in Saudi Pro League    Saudi musical marvels takes center stage in Tokyo's iconic opera hall    Saudi Arabia and Japan to collaborate on training Saudi students in Manga comics Saudi Minister of Culture discusses cultural collaboration during Tokyo visit    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Sitting too much linked to heart disease –– even if you work out    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



US growth slows in Q2, outlook less dismal
Published in The Saudi Gazette on 28 - 08 - 2011

The struggling US economy expanded even more slowly than previously thought in the second quarter of 2011, but a breakdown of the growth suggested a new recession could be avoided.
Gross domestic product rose at an annual rate of 1 percent, the Commerce Department said on Friday, as restocking by businesses and growth in exports proved less strong than initially estimated.
“While confidence indicators have plummeted of late, the most timely hard numbers certainly do not suggest that the economy has fallen back into a recession,” said Harm Bandholz, chief US economist at UniCredit Research in New York.
“Instead, we still continue to expect that growth in the second half of the year will accelerate to about 2 percent.”
The rate of growth between April and June was cut from the government's first reading of 1.3 percent and followed a lethargic 0.4 percent pace in the first three months of 2011.
This means the economy grew only 0.7 percent in the first half of the year. Nonetheless, and despite a sharp fall in consumer confidence this month, economists do not believe the economy will fall back into recession.
The Thomson Reuters/University of Michigan consumer sentiment index fell to 55.7 this month from 63.7 in July. It was slightly better than August's preliminary reading of 54.9, which had been the lowest level since May 1980.
The weak growth pace has been blamed on high gasoline prices, bad weather and supply-chain disruptions from the March earthquake in Japan, all of which are considered to be temporary drags on the economy.
Federal Reserve Chairman Ben Bernanke told a gathering of central bankers from around the globe in the Rocky Mountains of Wyoming that the economy's recovery from the worst downturn since the 1930s “has been much less robust than we had hoped.”
He stopped short of detailing further monetary policy action to bolster the ailing economy, but said the US central bank would consider what more it could do to fight high unemployment.
US stocks rose and Wall Street recorded its first weekly gain in more than a month. Prices of U.S. government debt rose, while the dollar fell against a basket of currencies.
Details of the GDP report were generally encouraging, with consumer spending slightly firmer and businesses accumulating fewer goods than previously thought. Business spending was also more robust than initially believed.
This should improve the economy's prospects for the third quarter, although a strong pick-up in growth remains remote.
Economists said the economy was in desperate need of both fiscal and monetary stimulus, but none expected much help on either front.
The Fed has injected about $2.3 trillion into the economy through purchases of government and agency debt since late 2008 and has slashed interest rates to near zero, leaving it with limited ammunition to bolster the economy.
At the same time, there is no appetite in Washington to increase government spending because of a huge budget deficit.
“The economy is on its own,” said Christopher Probyn, chief economist at State Street Global Advisors in Boston. “We are not going to get a marked acceleration in growth.”
Business inventories increased $40.6 billion instead of $49.6 billion, cutting 0.23 percentage point from GDP growth during the quarter. The slower restocking was largely blamed on the disruptions to motor vehicle production because of a shortage of parts from Japan.
Motor vehicle production rebounded strongly in July. The slow build-up of inventories also means goods are not piling up on shelves, which should support growth in the third quarter. Excluding inventories, the economy grew at a 1.2 percent rate.
Trade barely contributed to output in the second quarter despite a weak dollar.
The drag from business inventories was offset by growth in consumer spending, which was revised up to a 0.4 percent rate from 0.1 percent.
While sentiment has deteriorated sharply, it remains unclear whether this will translate to consumers and businesses hunkering down, given that data such as industrial production, retail sales and employment remain relatively firm.


Clic here to read the story from its source.