BW Communities

US Shrinks, ....

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The US economy shrank at a 0.3 per cent annual rate in the third quarter, its sharpest contraction in seven years, as consumers cut spending and businesses reduced investment in the face of rising fears that recession was setting in. The classical definition of recession is of negative growth for two successive quarters. In the US, this has not been the case. However, the country suffered negative growth twice within a span of four quarters, reinforcing the belief that a recession is looming. In the fourth quarter of 2007, the US economy had shrank 0.2 per cent. The US commerce department said the third-quarter contraction in gross domestic product was the steepest since the corresponding quarter in 2001 though it was slightly less than the 0.5 per cent rate of reduction that Wall Street economists had forecast. More spending by the government partly offset a sharp retreat by consumers. The third-quarter contraction was a striking turnaround from the second quarter’s relatively brisk 2.8 per cent growth rate. It occurred during the financial turmoil that has heightened worry about a potentially lengthy US recession. American stocks, however, went up marginally today, shrugging off weak economic growth figures. All the three major indices — Dow Jones Industrial Average, S&P 500 and Nasdaq — were trading in the positive territory. Japan and Germany said on Thursday they would plough billions of dollars into their economies. Japan, the world’s second biggest economy, unveiled a 5 trillion yen ($51 billion) package of spending measures, and Germany planned a range of steps worth up to 25 billion euros ($32 billion) to boost business. Amex job cut Global payments and travel company American Express today said it would cut 7,000 jobs — about 10 per cent of its workforce worldwide — a move expected to result in cost savings to the tune of $1.8 billion in 2009. The company also has a significant presence in India. Courtesy : The Telegraph