Good news for Obama: US economic growth has been strong this quarter

La Verne Amigo

There is evidence that the US economy is at its highest for 2014 and is still improving.  The US government stated that the gross domestic product during the third quarter has gone up 5%, which is higher than the previous forecast of 3.9% growth.

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Financial analysts revealed that this year’s economic growth was the highest America has experienced since 2003. This makes America a leading destination for investors from 2014 onwards.

The first quarter of 2014 showed a negative growth rate, which was caused by the harsh winter and other weather disturbances that led to damage in crops and properties. However, after this initial setback, the economy recovered very quickly.

Rapid economic growth was brought about by the strengthening of business investments, housing exports, government spending, and consumer spending.

The roll back in gas prices has encouraged consumers to spend more as they expect good business prospects and a healthy economy. Recently, Americans saved close to $500 dollars on gas since the decline in prices, and this money has gone right back into the economy.

As a result of the growth, a recent poll showed that Americans are now highly confident that the country’s economy is indeed going to keep improving.  This is good news for a country with consumers that are still nervous about the recession from 2008.

The healthy economic environment led to the opening of more establishments and an increase in both demand and supply of jobs. In November, 321,000 jobs were created and a lot more job openings are expected in the coming months.

On the other hand, interest rates are expected to go up, one thing that many Americans dread. As can be remembered, interest rates remained low for almost a decade, and some people fear that the increase would be so large that it might stagnate economic growth.

The US economy is now very and healthy, and it is hoped that gas prices will remain low to increase the spending power of consumers, which in turn, would boost the economy and lead to economic growth.

Despite this spurt in growth, the public has been warned by officials not to feel too confident that  growth can be sustained because just recently, investment returns seemed to have waned a bit.   If the trend continues, the US economy would be exhibiting lower growth rate in the next quarter.