Tracking the U.S Economy

2714 WordsOct 29, 201411 Pages
Tracking the U.S Economy In 2014 Emnet Idesta Jacksonville University Davis College of Business ECON 201 Professor Pordeli 29 May 2014 Table Of Contents Executive Summary...........................................................................................................3 Current State of the U.S. Economy A. Gross Domestic Product (GDP)................................................................4 B. Foreign Trade (Exports & Imports)..........................................................6 C. Gross Private Domestic Investment..........................................................6 D. Consumer Spending…show more content…
Reduction in real exports (real imports, which are a subtracted in the GDP calculation declined as well), accounted for a significant portion of the economic decline, followed by a decrease in inventory investments, non residential fixed investments, residential investments and a cutback in state and local government spending. The GDP 's only supporter so far this year came in the form of increased real personal consumer expenditures, which grew from 2.1 percent from the previous estimate of 2.0 percent, mainly reflecting sharp increases in services and slight increases in other areas. The BEA states, "The downturn in the percent change in real GDP, primarily reflected a downturn in exports, a larger decrease in private inventory investment, and downturns in nonresidential fixed investment and in state and local government spending that were partly offset by an upturn in federal government spending" (2014). The table below, prepared by the BEA, shows precisely which components of GDP rose and tumbled in Q1 2014. B. Foreign Trade (Exports & Imports) According to records maintained by the U.S Census Bureau and the BEA, exports in April of $193.3 billion and imports of $240.6 billion resulted in a trade deficit of $47.2 billion, up from $44.2 billion in March. The April exports were $0.3 billion less than March exports of $193.7 billion, but
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