Communication in Economics Essay Example | Topics and Well Written Essays - 500 words - 3

Communication in Economics - Essay Example While private investments showed growth of 0.72% and net exports rose by 0.99% in last quarter of 2013, the government spending is a major drag on the economy as it declined by 1.05%. In view of the economic recovery observed in 2013, it was expected that economys momentum will continue; however, bad weather in first quarter and overseas volatility have reduced hopes of further improvement. The third quarter healthy growth of 4.1% in 2013 had generated enthusiasm across the businesses and industries to continue to have rapid job creations, but certain other economic measurements have been found to giving differing signals. Job creation, consumer spending, factory output and the construction industry data are not in line with the expectations. Many attribute this down performance in the first quarter of 2014 to extreme winter in many parts of the country. Jeremy Lawson, an economist at Standard Life, is of the view that the growth rates recorded in the previous quarters were, in fact, over stating what was happening actually. First-quarter consumer-spending is not as per expectations and the mining industry is still passing through a weak market globally. On export front, the US economy registered a 9.4% growth, which was originally anticipated to rise by 11.4%. Business spending showed buoyancy in the second half of 2013 as companies continued to invest in buildings, software, and equipments. Fixed investment grew by 7.3% in the fourth quarter generating hopes for future growth. Public-sector wages are mostly stagnant not showing any hopes of recovery. As usual, the saving rate has been registered only 4.5% in the fourth quarter that is one percentage point less when compared with the average of the previous three years. Consumers are spending but the government is holding back. In the last quarter of 2013, the Federal Government spending was down by 12.8%. The Federal Reserve is