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According to several market intelligence reports, the United States' economy is the largest in the world; however, the U.S. economy has been experiencing a sustained period of sluggish growth over the previous decade. President Trump assumed office in late 2016 and vowed to reverse his predecessor's tax, trade, and regulatory reforms, including dismantling massive bills including the Dodd-Frank financial regulatory bill and the Affordable Care Act. Despite disturbances such as the hurricane and intense rainstorm in various parts of the region, the US economy has recently shown exceptional resilience, especially in the third quarter of the 2017 fiscal year. The United States of America’s economic outlook remains resilient according to such economic indicators as gross domestic product and its components because recent news releases of various government agencies show a positive economic trend.
The fiscal situation of the federal government remains buoyant. During the third quarter of the fiscal year 2017, the gross domestic product (GDP) improved at a yearly rate of 3.3 percent compared with the second quarter which stood at 3.1 percent (Bureau of Economic Analysis, 2017). The above increase in GDP echoed the positive impact of private inventory investment as well as the decline in imports; hence, the phenomenon reduced the fiscal deficit and improved the fiscal situation of the federal government ((The U.S. Census Bureau, 2017). The GDP is expected to continue growing as result of new administration's policy change which favors the healthy business environment and the stock market. On the other hand, with the improvement in the United States employment rates puts pressure on wage rates. Bureau of Labor Statistics (2017) indicate that the rate of unemployment decreased to 4.1 percent while the nonfarm payroll increased by 261,000 during 2017. Moreover, the employment in food and drinking places continues to increase sharply; hence the situation puts pressure on the rates of wage while it boosts household incomes and consumer confidence. Furthermore, food and retail services sales improved by a monthly rate of 0.2 percent between the period of August 2017 and October 2017 despite the disturbances of Hurricane in different States. Hence the whole situation is also supported by improvement in the stock market (Bureau of Labor Statistics, 2017).
The Consumer Price Index (CPI), especially for the urban consumers went up slightly by 0.1 percent. Besides, the shelter index rose by 0.3 percent (Bureau of Labor Statistics, 2017). While the energy index dropped, the food index remained unaffected (The U.S. Census Bureau, 2017). These are slight changes in prices of goods in the United States of America during 2017. Therefore, the situation above shows that the U.S. economy is not experiencing deflation, inflation or stagnation and thus it remains buoyant. Hence, the U.S. economy cannot go through shock as result of the increase in GDP with a contemporary economic trend in decline in the rate of unemployment throughout the country (The Conference Board, 2011).
In conclusion, the rise in consumer price index, increase in gross domestic product, strengthened financial stability, and reduced unemployment rate the economic growth will continue in the future because there is a positive economic trend. Furthermore, the irrepressible asset price, as well as consumer confidence and strong business, will support investment and consumption growth. However, the consequence of slowing employment growth on consumption will be partially counterbalanced by the wage expansion as the labor market continues to tighten. Hence the United States economic outlook mains resilient according to the above economic indicators as gross domestic product and its components as result of the positive trend.
Bureau of Economic Analysis. (2017). Gross domestic product: Third Quarter 2017 (second estimate) (BEA 17-62). Washington, DC: U.S. Government Press Office. Retrieved from https://www.bea.gov/newsreleases/national/gdp/2017/pdf/gdp3q17_2nd.pdf
Bureau of Labor Statistics. (2017). Consumer price index- October 2017 (USDL-17-1503). Washington, DC: U.S. Government Printing Office. Retrieved from https://www.bls.gov/news.release/pdf/cpi.pdf
Bureau of Labor Statistics. (2017). The employment situation Summary (USDL-17-1448). Washington, DC: U.S. Government Press Office. Retrieved from https://www.bls.gov/news.release/empsit.nr0.htm
The Conference Board. (2011). The conference board leading economic index (LEI) for the United States and related composite economic indexes for October 2017. Washington, DC: Government Press Office. Retrieved from https://www.conference-board.org/pdf_free/press/US%20LEI%20-%20Tech%20Notes%20Nov2017.pdf
The U.S. Census Bureau. (2017). Advance monthly sales for retail and food services, October 2017 (CB17-180). Washington, DC: U.S. Government Press Office. Retrieved from https://www.census.gov/retail/marts/www/marts_current.pdf
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