When Will the US Economic Outlook Improve?

Will the US economic outlook improve any time soon? Maybe yes and maybe no, depending on which analyst or expert you ask. There are some positive signs that may indicate the recent economic troubles are coming to an end, but these are few and far between. The unemployment rate for the nation is still above 8%, with some arguing that the true rate of unemployment is much higher. The housing market is down, investors and consumers have no confidence about the future, and lending activity is almost nonexistent.

Some experts point to the fact that new housing construction is up as a sign that the economy is improving, even though housing prices are still extremely low when compared to values 10 years ago. Retail sales and the trade deficit are also factors that are bringing down the economic outlook for the USA. Retail sales have picked up some since the first 6 months of 2012, but this growth is weaker than previous years.

The US economic outlook also considers the trade deficit, and this deficit is expected to be more than $600 million by the end of 2012. Oil makes up part of this deficit, and the price of this commodity continues to increase as the year goes on. The growth of imports into the USE will be higher than the exports from the country, and this will cause the GDP growth to decrease even further.

Energy prices and food prices have seen tremendous increases in 2012, and the drought that has caused a loss of crops across the nation also has an impact. Many experts in the economy predict that the outlook for the USA will not improve significantly for the next year or two, and consumers will continue to struggle as the economy continues to falter.

The US economic outlook is not expected to improve in the immediate future. It could take several more years before the economy is actually thriving again, and there are many possible factors that can affect whether the economy picks up or not. Some hope that by the end of 2013 or the middle of 2014 the economy will have rebounded considerably, but others predict this will take much longer.

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