Arab Today, arab today us economy continues broad expansion
Last Updated : GMT 17:35:53
Arab Today, arab today
Arab Today, arab today

US economy continues broad expansion

Arab Today, arab today

Arab Today, arab today US economy continues broad expansion

Federal Reserve Board of Governors
Washington - AFP

The US economy generated "modest" or "moderate" growth in late 2014, although lower oil prices were hitting energy-producing regions, according to a Federal Reserve report released Wednesday.   
US job growth expanded "moderately" from mid-November through late December, but that was not accompanied by upward pressure on wages, said the Fed's Beige Book, a collection of economic reports from the central bank's 12 districts.
"Significant wage pressures were largely limited to workers with specialized technical skills," said the mostly upbeat report, which will be used as a basis for discussion at the Fed's next monetary policy meeting on January 27 and 28.
The rapid slide in oil prices, which at the end of the survey period had lost about half their value since June, showed up in slower growth in energy regions that in turn weighed on some hiring.  
While most Fed districts reported the modest or moderate economic growth, the Kansas City District, in the Midwest, reported only slight expansion, with slower growth in the energy industry.
"Most respondents reported lower drilling activity, and demand for oilfield services fell," the report said.
"Oil rigs decreased marginally while natural gas rigs increased. Future drilling activity, employment, and capital expenditures were projected to be significantly lower in response to lower oil prices."
And the Dallas Fed in Texas, reflecting the rapid slide in crude oil prices, indicated "that growth slowed slightly during the reporting period and that several contacts expressed concern about the effect of lower oil prices on the District economy."
Lower oil prices led to an overall slowing in hiring, for example, in the energy-producing regions of North Dakota and Montana.
The persistent minimal growth in wages has been a big worry for Fed officials as they debate the first increase in interest rates. The key federal funds rate has been pegged near zero since December 2008 to shore up the economy's recovery from deep recession.
- Stalled wages a worry -
Wages have stagnated despite the best annual job creation since 1999 last year, with the world's largest economy pumping out nearly three million jobs and the unemployment rate falling to 5.6 percent, its lowest level in six and a half years.
Some analysts say the robust number of jobs created will ultimately show up in higher wages, and some on the Fed's policy arm, the Federal Open Market Committee, have pointed to soft wage gains in arguing that the first increase in rates should be delayed.
The minutes of the December 16-17 FOMC meeting showed that the first hike in the federal funds rate could come at the April 28-29 meeting. Some Fed-watchers expect it to be announced at the June 16-17 meeting, which is followed by a news conference with Fed Chair Janet Yellen.
Inflationary pressures remained tame as 2014 wound down, helped by falling oil prices. "Prices increased slightly, on balance, in most Districts during the reporting period," the report said.
The major part of the housing market, single-family homes, was largely flat.
Consumer spending, which drives about 70 percent of the economy's activity, increased in most districts, while retail sales garnered "generally modest" year-over-year gains.
"Overall, we view the Beige Book as consistent with recent readings from high-frequency economic indicators, and it does not materially change our view of the overall state of the US economy," said Barclays Research.
The lackluster accounts on retail sales came after the Commerce Department reported earlier in the day that December retail sales fell, by a hefty 0.9 percent, instead of an expected increase, and revised down the prior two months' gains.
According to Macroeconomic Advisers, the retail weakness suggested less growth of consumer spending in the fourth quarter that would curb economic expansion as this year gets under way.
The researchers lowered their estimate of gross domestic product growth by two-tenths to 3.2 percent for the 2014 final quarter, and by two-tenths to 2.4 percent for the 2015 first quarter.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us economy continues broad expansion Arab Today, arab today us economy continues broad expansion

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 06:04 2017 Wednesday ,22 February

Hammond closes in on budget goal

GMT 05:34 2017 Wednesday ,22 February

Euro zone economy outlook shines

GMT 04:10 2017 Wednesday ,22 February

US stocks finish at another all-time high

GMT 02:31 2017 Wednesday ,22 February

Arms deals worth over AED6.9 bn sealed on day two of IDEX

GMT 02:21 2017 Wednesday ,22 February

Putin urges Russian nuclear weapons boost

GMT 21:14 2017 Tuesday ,21 February

Tatas will lead, not follow
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday