United States economic data weak economic prospects even more gloomy

United States July first index creation over the past year, the largest drop, while last week's initial application for unemployment assistance for the fifth consecutive week the number higher than the 40 million mark, and the Philadelphia region August manufacturing continuous decline in the first nine months, a series of weak data will allow economic growth prospects even more gloomy.

July first index declined 0.7%

Integrated media, the United States Economic Council (Conference Board) 21, published July first index down 0.7%, not more than the estimated, the highest since August 2007, the maximum reduction. The index points to the future 3-6 month economic direction.

The report shows that in ten pointers, has five indicators be setbacks to construction approval and stock prices have fallen considerably. Economist predicts leading index of July fall 0.2%. The index fell in June this year 0.1%, over the past six months, the index was down 1.8%. According to the economic convergence of views, if the year falling 4-4.5% represents the recession is looming.

Lehman Brothers Economist MichelleMeyer in mic emphasized: "before the United States economy in the second half of the face rather unattractive, severe deterioration of the property market and capital market issues will enable consumer spending shrinking!"

Philadelphia area manufacturing industry downturn

At the same time, the Federal Reserve (Fed) Philadelphia Bank Thursday, Philadelphia region August manufacturing continuous decline in the first nine months, the for-12.7, index below zero, representative flagging mostly enterprise reporting. But the rate of decline slowed.

In addition, the price pressure easing raw materials price index in August to 57.5 July 75.6. August new orders index-11.9, close to the fair.

A weak job market

United States Department of labor published 21, last week the number of initial applications for unemployment assistance 43.2 million, for the fifth consecutive week over 40 million mark. This year, employment in the United States has been reduced by 46.3 million.

United States companies are laying off staff activities, because the demand going soft, and raw materials prices will remain high. High unemployment rate in the market concerned, before the end of the year in consumer spending growth will slow down because the Bush Administration's plan on showing tax return form economic boost effects will diminished, the cost of living is increasing.

Can see light at the end of next year, or

However, analysts believe that United States employment market has begun to reveal the dawn. Michigan University economists at 21, the report said that next year the United States will be increased to 90 000 jobs, 2010 can increase up to 260 000.

Michigan University economists said Joan Crary, this forecast is based on expected United States economy in the second half of 2009 will start to recover. She also added that the scope of the new employment may be extensive. But the two types of injuries most heavy industry market is expected to help recovery.

"You want to appear on such recovery in the housing market must be reversed, employment in the construction industry will increase. In addition to employment growth in the automotive industry, the production will be transferred to small cars, "she said. She also said that as long as oil prices remain high, it is expected that more enterprises will actively investing in alternative sources of energy such as solar, wind and ethanol. "The future of alternative energy sources to this area, there may be a lot of research and development, employment will increase. ”