Page 2 - alle ministers Dec 27, 2014
P. 2
U.S. NEWS A7
Saturday 27 December 2014
US Financial Front:
In 2014, US economy began shaky, finished strong
JOSH BOAK paced extremely low in- Last minute Christmas shoppers are reflected in a store’s noted that the falling prices
AP Economics Writer flation. Home building has resemble a tax cut, gener-
WASHINGTON (AP) — The been tepid. window as they walk through Chicago’s Loop. After enduring ating savings for consum-
U.S. economy flexed its old But worries earlier this year ers that can be spent else-
muscles in 2014. that the economy might be a brutal winter, businesses, consumers and investors showed where to drive economic
More than five years re- trapped indefinitely by slug- growth.
moved from the Great Re- gish growth have largely renewed vigor as 2014 wore on and set themselves apart from — AUTOS SALES UP
cession, worries had taken faded. Here are the eco- Far more Americans
hold at the start of the year nomic highlights of 2014: much of the world. (AP Photo/Charles Rex Arbogast) splurged on a new car after
that perhaps the world’s — HIRING BOOM having held onto aging ve-
largest economy had slid Employers added 2.65 mil- ers, energy got significantly prices nationwide dropped hicles during the recession
into a semi-permanent funk. lion jobs over the first 11 cheaper. Crude oil prices to $2.32 a gallon, down and slow early stages of
But consumers, business- months of the year, and were essentially cut in half roughly a dollar from a year the recovery. Sales were on
es and investors, after en- the unemployment rate from this year’s high. The ago, according to AAA. track to increase 6 percent
during a brutal winter, sank to 5.8 percent from slowing economies in Eu- Some of that price slow- this year, with 16.5 million
showed renewed vigor as 6.7 percent. When the gov- rope and Asia curbed de- down has hurt U.S. oil pro- new vehicles on the road,
the year wore on and set ernment announces the mand, while production ducers, which must weigh according to Cars.com.
the United States apart from December job data next remained steady. The price layoffs. But overall, cheaper That would be the best sales
much of the world. month, the 2014 job total is decline trickled down to oil is a positive. Federal Re- pace since 2006.
Stocks repeatedly set re- expected to be just shy of 3 gasoline pumps. Average serve Chair Janet Yellen —INTEREST RATES DROP
cord highs — and did so million — the most since the Even as the economy has
again Friday, with the Dow dot-com era in 1999. Com- strengthened — usually a
Jones industrial average ris- pared with recent years, sign that interest rates will
ing modestly to a new peak. those gains have been less rise — it’s become easi-
Employers were on pace to concentrated in lower- er to borrow. More loans
add nearly 3 million jobs, paying industries such as re- mean more spending and
the most in 15 years. Sinking tail, food service and temp faster growth. Rates have
oil prices cut gasoline costs agencies. declined even though the
to their lowest levels since “We’re finally entering that Fed ended its program to
May 2009. Auto sales accel- virtuous cycle phase of the stimulate growth by buying
erated. Inflation was a his- expansion” when more jobs billions in Treasury and mort-
torically low sub-2 percent. lead to higher incomes, gage bonds each month.q
The U.S. economy proved which generates more
it could thrive even as the consumer spending and
Federal Reserve ended growth, said Brett Ryan,
its bond buying program, an economist at Deutsche
which had been intended Bank.
to aid growth by holding Though average wage
down long-term loan rates. growth has been modest,
All told, the United States re- the number of people with
mained insulated from the paychecks — and the abil-
financial struggles surfacing ity to spend — has soared. If
everywhere from Europe you exclude the economy’s
and Latin America to Chi- winter-induced 2.1 percent
na, Japan and Russia. annual contraction in the
So what explained the U.S. first quarter of the year, an-
economy’s resilience this nualized growth has aver-
year? aged 4.4 percent in four of
Economists say it largely re- the past five quarters. That’s
flected the delayed ben- far above the historic aver-
efits of finally mending the age of roughly 3.2 percent
damage from the worst in the decades after World
downturn in nearly 80 years. War II.
Unlike past recoveries that — STOCKS SURGE
enjoyed comparatively Stocks extended their bull-
swift rebounds, this one ish stampede of nearly six
proved agonizingly slow. It years. The Standard & Poor’s
took 6½ years to regain all 500 index climbed about
the jobs lost to the recession 13 percent this year, hitting
— 8.7 million — far longer record highs more than 50
than during previous recov- times. If you bought the in-
eries. dex at a market bottom in
“It was a healing process March 2009, you’ve basi-
from a severe recession cally tripled your money.
and the financial crisis,” said Corporate mergers helped
Richard Moody, chief econ- drive this year’s gains, along
omist at Regions Financial, with major companies buy-
a bank based in Alabama. ing up $400 billion-plus of
The healing isn’t complete. their own stock.
Wage growth remains lack- —OIL PRICES PLUNGE
luster and has barely out- In a gift for U.S. consum-
Saturday 27 December 2014
US Financial Front:
In 2014, US economy began shaky, finished strong
JOSH BOAK paced extremely low in- Last minute Christmas shoppers are reflected in a store’s noted that the falling prices
AP Economics Writer flation. Home building has resemble a tax cut, gener-
WASHINGTON (AP) — The been tepid. window as they walk through Chicago’s Loop. After enduring ating savings for consum-
U.S. economy flexed its old But worries earlier this year ers that can be spent else-
muscles in 2014. that the economy might be a brutal winter, businesses, consumers and investors showed where to drive economic
More than five years re- trapped indefinitely by slug- growth.
moved from the Great Re- gish growth have largely renewed vigor as 2014 wore on and set themselves apart from — AUTOS SALES UP
cession, worries had taken faded. Here are the eco- Far more Americans
hold at the start of the year nomic highlights of 2014: much of the world. (AP Photo/Charles Rex Arbogast) splurged on a new car after
that perhaps the world’s — HIRING BOOM having held onto aging ve-
largest economy had slid Employers added 2.65 mil- ers, energy got significantly prices nationwide dropped hicles during the recession
into a semi-permanent funk. lion jobs over the first 11 cheaper. Crude oil prices to $2.32 a gallon, down and slow early stages of
But consumers, business- months of the year, and were essentially cut in half roughly a dollar from a year the recovery. Sales were on
es and investors, after en- the unemployment rate from this year’s high. The ago, according to AAA. track to increase 6 percent
during a brutal winter, sank to 5.8 percent from slowing economies in Eu- Some of that price slow- this year, with 16.5 million
showed renewed vigor as 6.7 percent. When the gov- rope and Asia curbed de- down has hurt U.S. oil pro- new vehicles on the road,
the year wore on and set ernment announces the mand, while production ducers, which must weigh according to Cars.com.
the United States apart from December job data next remained steady. The price layoffs. But overall, cheaper That would be the best sales
much of the world. month, the 2014 job total is decline trickled down to oil is a positive. Federal Re- pace since 2006.
Stocks repeatedly set re- expected to be just shy of 3 gasoline pumps. Average serve Chair Janet Yellen —INTEREST RATES DROP
cord highs — and did so million — the most since the Even as the economy has
again Friday, with the Dow dot-com era in 1999. Com- strengthened — usually a
Jones industrial average ris- pared with recent years, sign that interest rates will
ing modestly to a new peak. those gains have been less rise — it’s become easi-
Employers were on pace to concentrated in lower- er to borrow. More loans
add nearly 3 million jobs, paying industries such as re- mean more spending and
the most in 15 years. Sinking tail, food service and temp faster growth. Rates have
oil prices cut gasoline costs agencies. declined even though the
to their lowest levels since “We’re finally entering that Fed ended its program to
May 2009. Auto sales accel- virtuous cycle phase of the stimulate growth by buying
erated. Inflation was a his- expansion” when more jobs billions in Treasury and mort-
torically low sub-2 percent. lead to higher incomes, gage bonds each month.q
The U.S. economy proved which generates more
it could thrive even as the consumer spending and
Federal Reserve ended growth, said Brett Ryan,
its bond buying program, an economist at Deutsche
which had been intended Bank.
to aid growth by holding Though average wage
down long-term loan rates. growth has been modest,
All told, the United States re- the number of people with
mained insulated from the paychecks — and the abil-
financial struggles surfacing ity to spend — has soared. If
everywhere from Europe you exclude the economy’s
and Latin America to Chi- winter-induced 2.1 percent
na, Japan and Russia. annual contraction in the
So what explained the U.S. first quarter of the year, an-
economy’s resilience this nualized growth has aver-
year? aged 4.4 percent in four of
Economists say it largely re- the past five quarters. That’s
flected the delayed ben- far above the historic aver-
efits of finally mending the age of roughly 3.2 percent
damage from the worst in the decades after World
downturn in nearly 80 years. War II.
Unlike past recoveries that — STOCKS SURGE
enjoyed comparatively Stocks extended their bull-
swift rebounds, this one ish stampede of nearly six
proved agonizingly slow. It years. The Standard & Poor’s
took 6½ years to regain all 500 index climbed about
the jobs lost to the recession 13 percent this year, hitting
— 8.7 million — far longer record highs more than 50
than during previous recov- times. If you bought the in-
eries. dex at a market bottom in
“It was a healing process March 2009, you’ve basi-
from a severe recession cally tripled your money.
and the financial crisis,” said Corporate mergers helped
Richard Moody, chief econ- drive this year’s gains, along
omist at Regions Financial, with major companies buy-
a bank based in Alabama. ing up $400 billion-plus of
The healing isn’t complete. their own stock.
Wage growth remains lack- —OIL PRICES PLUNGE
luster and has barely out- In a gift for U.S. consum-
