Investing and Global Finance News

Tag Archives: GDP

Inventories, Sales Up in December

The Department of Commerce reported that US business inventories were up better than expected in December, while sales rose by their biggest percentage since 2011. The announcement said that inventories went up by 0.4 percent, while November’s figure had to be re-stated as 0.8 percent in place of the previously announced 0.7 percent.

Business inventories are a crucial factor in the determination of the gross domestic product, or GDP.

Retail inventories were also up by 0.1 percent in December and not the 0 which had been predicted before the report was disseminated. November’s inventories climbed by 0.9 percent. Without cars the retail inventories were 0.4 percent and not the predicted 0.2 percent. This is the figure that is used to calculate GDP. November’s rise was 0.5 percent.

Inventory investment factored in a whole percentage point to the 1.9 percent annualized growth rate for the economy in the fourth quarter of 2016. That was the second quarterly contribution to the growth of GDP in a row. Since the second quarter of 2015 inventories had been holding down the growth rate of GDP.

December’s business sales climbed by 2.0 percent, the largest since March of 2011, and came right after a 0.3 percent growth in sales of November. One way to look at the sales pace versus inventory is by the measure of how long it would take to clear the shelves. With December’s sales pace it would take 1.35 months for businesses to clear the shelves, while at November’s pace it would take 1.38 months.

Economy Thawing as GDP Expands

Now that the long, cold winter is fading into the past, spring is bringing warmth as well as growth to the US economy. According to the government, the US economy saw 4.6 percent annualized growth during the 2nd quarter of 2014, compared to a 2.1 percent slowdown in the first quarter. Analysts expressed optimism that… Continue Reading

Economics: Europe Vis-à-vis America

Europe Awaiting Crisis It seems that while America and much of the western world is about ready to really recover from their economic crisis, the situation is quite different for Europe which is still awaiting its own crisis. This might not spell such great news for the region. Indeed, CEO of Principal Global Investors Jim… Continue Reading

Royal Wedding Economics: 1981 V 2011

UK’s 1981 Economy Things were pretty bad economically 30 years ago just before Charles – probably somewhat regrettably – said “I Do” to Diana. But according to a recent study comparing the economics of the time between the two royal weddings spanning the last three decades, things for Britain’s economy were “beginning to turn a… Continue Reading

Mysteries of Malta

      Surprising Maltese Status   It might be somewhat of a shock to those not-in-the-know that Malta – a tiny portion of land found in the Mediterranean Sea measuring approximately 300 sq km – is pretty big when it comes to economic and welfare aspirations and successes.  Yet apart from its somewhat modest… Continue Reading

Asia and the Global Economy Today

<h3>Global Financial Crisis on the Mend</h3> Finally there is some good news vis-à-vis the much talked about – nay, incessantly whined about – global financial crisis.  The peak was around 3 years ago but since then there have been signs of improvement, albeit at a snail’s pace and still necessitating significant assistance according to Sultan… Continue Reading