The unemployment rate rising corporate profits back United States economy is in critical condition

United States largest automobile manufacturer — General Motors announced in the second quarter of this year a substantial loss, it released the results of 352 home sandp 500 index average earnings back two enterprises, at the same time, the United States the latest unemployment has risen to a four-year high of further evidence of United States economy is on the verge of recession.

Corporate earnings back

(http://finance.) General Motors at this year's second quarter loss of $ 155 million, this loss is in General Motors has the third largest losses, endeavour to GM's commitment to reversing the disadvantages is certainly a major blow. The company blamed the losses in the United States automobile sales plunged huge restructuring plan and labour instability.

Crude oil prices continue to rise, resulting in fuel consumption and large trucks and multifunctional sports vehicle (SUV) sales volume to decline. United States automobile sales slowdown reflects the subprime mortgage crisis and crude oil prices on the impact of the economy.

At the same time, the statistics show that pengboshe 352 home sandp 500 index of Corporation, in the second quarter the average earnings decreased by 20%, and the financial industry and consumer products business was badly hit, decreased by 82% and 5.4%. Cisco systems, Procter and Time Warner announced this week, the expected performance is not very optimistic.

Unemployment rate rises to four-year high

As employers cut jobs, the unemployment rate for the month of July, the United States came to the highest level in four years. United States Department of labor report, published in the July unemployment rate 5.7%, a slight increase in June. At the same time, the total number of work for seven months of decline, the fewer 5.1 million job. Manufacturing and construction work to cut up, these two areas were sagging housing market and the credit crisis hits.

The analysis indicated that the United States companies in oil prices and rising food costs, are not willing to increase recruitment, further contributed to the economic downturn. There are still actively recruiting only government departments, services, education and health services. Economists predict a further erosion in the United States 70 000 000 jobs, job reductions coupled with high energy prices will impact consumer spending, consumer spending accounts for two thirds of the economic activities of the United States.

In addition, the United States this week will also be published services index, market expectations, the formulation by the Institute for supply management information will show United States service in July fell again, for the second consecutive month decreases. Other this week published data also includes housing sales and consumer spending, the results will be further reflected in the United States real estate market is experiencing a recession, and the sharp rise in fuel costs and the negative effects are spread to the economy as a whole.