Yale Fishman is business and law correspondent who is following the changing rates in the US economy. As a business expert with wide knowledge of economy related laws Fishman tracks the conditions under which the positive growth of the economy takes place.
A growth of 0.8% in the US economy was noticed in the first four months of 2014. The continuous growth listed the US economy high on the list among the fastest growing western economies. Last month, official figures confirmed that the US economy grew in the same rate as the previous quarter. According to the official figures, households spent more and firms lifted their investment.
The latest figures showed that public sector borrowing in January and February rose by nearly 3.6%.
The US’s economy at the moment is 0.6% smaller than in early 2012, but analysts now expect this number to have been outrun.
According to Yale Fishman helpful factors in the project to rebalance the economy are the growing of construction and manufacturing, the sable rate of the GDP for the first quarter and the fact that the business investment rose by nearly 8.9% over the previous year.
Another important factor for the growth of the US economy is the fact that the government borrowed a bit less last year than first thought – $90,4B compared to the previous total of $110B.
As reported by Yale Fishman, it may be partly due to city bonuses being paid late in June last year to coincide with the abolition of the 50p tax rate for high earners.
“We have been waiting for this to happen and we hope that US economy can now sustain decent growth for an extended period”, Fishman added. He also revised up slightly his forecast for US economic growth to 2.1% for 2013.
Investments in business grew by 3.6% in the first quarter from the previous four-month period, the fastest rate of growth since the first quarter of 2010, adding 0.1% to GDP. Household spending in US rose by nearly 1%, picking up speed from the end of previous year. Net trade had no impact on growth, after adding 1% to GDP in the final three months of 2014, Fishman added.