Dec 24, 09 (Hamsayeh.Net) - Newly released data on Tuesday by US agencies point to a weaker than expected state of economy. Despite government’s interventions to boost spending, consumer confidence remain low.

 

Most US households who are the backbone for American style economic activities are holding on to their money lest they should encounter greater hardships in the future. The latest data show the US gross domestic product (GDP) raised only 2.2 percent from the last July-September quarter and that’s half a point lower than forecasts. What worries experts is the smaller than expected growth in the economy despite Obama’s massive injections of funds to boost the spending.

 

One such program was called ‘cash-for-clunkers’ where Americans were encouraged to purchase domestically manufactured automobiles on easy loan programs. In a sign of growing protectionism, Obama’s cash payments however failed to boost the real economy.

 

US manufacturing and small businesses remain extremely vulnerable as more people lose their jobs due to protracted slump since the beginning of the recession. US unemployment is officially at 10 percent but actual unemployment figure should be around 20 percent - moving up next year.

 

Economists believe it could take more time to see real signs of recovery and before that happen bad news and disappointments can be expected.

 

 

 

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