Econmics

In: Business and Management

Submitted By coschigano123
Words 1492
Pages 6
Macroeconomics
Michael Coschigano
Keller Graduate School
Econ 545
8-20-2014

GDP Growth Rate
Automobile industry has been affected by many factors that cut across the US economy both internal and externally. Since the end of the recession, the GDP of the United States was subjected to various economic and political constraints. The same has happened in European developed countries and other Asian nations, where the level of debt has remained high and yet the development baseline scenario is still high. For the case of the United States and in close relation with the automobile industry, the output in terms of growth has remained stagnant and is continuously becoming constrained because of the highly deleveraging and tough influences and uncertainties of the outlined policies. J.D power and associates analyst Jeff Schuster stated that there was a reduction in the number of sales during the first half of 2011 economic year. The reduction is believed to have resulted from a lack of customer confidence on the products (Akerson, 2014).

Macroeconomists have for a long time outlined that GDP strongly depends on consumption and the percentage of consumption dictating GDP at any given time stands at 70%. However, in August of 2011, the consumer based comfort index became the weakest since March of 2009, and the confidence level among the US-based consuming community dropped to the lowest level since the 2008 financial crisis (Hubbard & Antony, 2012). Automobiles are long term or durable products that most customers can prefer to sideline them in their budget if they are not sure of their future job status, and therefore ending up lowering the GDP of the automobiles. GDP has been at a drop, and it only started to rise from September of 2009 but the same evidence started to diminish considerably in 2010 (Akerson, 2014). The rise and fall of the GDP reflect…...

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