US Economy Slowed in Last 3 Months



Rising Gas Prices



The US economy has slowed substantial in the past three months from a few different factors that have really cut consumer spending for a lot of people. The rising gas prices is a major component of the consumer spending cuts. As well, awful weather has caused delay amongst a lot of construction sites and the government is spending the least amount on defence that they have in 6 years. The Commerce Department claimed that the annual rate for the January-March quarter grew at only 1.8 per cent, compared to the 3.1 in last years October-December quarter. Economists are saying it's a very slight and temporary setback. The economists are in agreement that gas prices will stabilize and the US will see constant growth for the rest of the year. All the money Americans are receiving from this years Social Security Tax cut is going towards fuel for their vehicles. In this past quarter, consumers boosted spending which is beneficial for the economy because t accounts for about 70%. Winter storms caused major delays in commercial construction and home owners construction. This contributed to the state of the economy.

The housing market and construction were very weak in the January-March quarter. In the past few years, the decreasing sales price for homes is a big contributor to the recession. It is said that because of the state of the housing economy, the country is taking longer to recover. Also, with government cuts on military, the economy is taking a hit from that.

All in all, I feel that oil industry has so much control over the success of our country and the US economies. The majority of citizens own a car in which they use daily, the one key factor about a car is that it is dependent on fuel. With the increase of fuel prices, it is very evident that Americans are left with less pocket money which is effecting the overall economy. They have less money for entertainment and less to contribute to the different areas of the economy. I feel with high gas prices, its sets a restriction on many citizens budget.