The consumer may floor the American economy

Lowered real estate prices, mounting energy costs and the growing employment causes serious challenge for the American consumer. The economical growth is predicted to undergo a fallback in the fourth quarter. Right now the economy seems to be in good shape, there is strong economical growth (3.9%) and rising employment (+166 000 jobs). Yet economists are gloomy about the future. They predict a lowered export and spending by consumers. Those two elements are traditionally very important fundaments of the economy.

The American consumer has become vulnerable because of the credit market and the related crisis in the housing market. This has its effect on consumption. Next to that, there is the booming oil price and insecurity on employment. For example, due to the credit crises market leader Countrywide Financial plans to fire 12 000 employees.
For the moment the American economy is healthy and strong but the future looks bleak.

I believe that in a global economy all regional markets are mutually dependent. If the future looks bleak for America, this sure will have consequences for Europe. Possibly we should prepare for an economical downturn in the near future. I think it might be a good idea to closely monitor the American economy in the coming months to get a better grasp of our economic future.

http://www.tijd.be/nieuws/economie_financien/artikel.asp?Id=3343158

Sarah Struyf