A growth of 2.9 percent has been determined so far. In the first half of the year, economic output contracted. According to the ministry, growth is primarily based on exports and consumer spending.
Accordingly, consumers increased their spending by 2.3 percent, which was previously determined as 1.7 percent. Construction expenditures, on the other hand, developed weakly, suppressing growth. The most important reason for this is the rapid increase in housing loan interest rates.
US growth figures are annualized. Therefore, they cannot be directly compared with data from Europe. To approximate a growth rate comparable to Europe, you need to divide the US rate by four.
Meanwhile, initial weekly jobless claims in the US rose less than expected. Their numbers rose to 216,000 in 2000, the Department of Labor announced in Washington on Thursday. Analysts had expected 222,000.
The level of requests for aid indicates that the labor market will remain strong. The first applications for unemployment benefits are accepted as an indicator of the short-term development of the labor market. Despite a weaker economy in the US, many companies are complaining of worker shortages. The latest labor market report also showed continued strength in the job market.
The monetary policy of the US Federal Reserve is strongly geared towards labor market development. Despite the decline, it is trying to control the high inflation rate with sharp interest rate hikes. However, in the recent period, it has slowed down the rate hikes in order not to push the economy too much.
(SDA)