US Economy Shrinks
Published / Last Updated on 31/01/2013
US Economy Shrinks.
The US economy slowed down in the final three months of 2012 by 0.1%.
This was unexpected and gave buoyant stock markets a little jolt back.
This is the first fall in growth in the US since the bottom of the global economic downturn back in 2009.
Our view
This is not bad news. The US economy has continued growth for 3 years and even the summer quarter showed growth on 3.1%.
Much has been made of the “fiscal cliff’, the fact that the US senate did not agree its budget for 2013 until the New Year and perhaps this held back corporates from releasing their own plans and growth strategy for 2013 until the national budget was agreed.
Jitters yes, disaster no.