Latest Economic history Stories

The U.S. gross domestic product fell 1 percent in the second quarter beating expectations soundly, the Bureau of Economic Analysis reported Friday. The figure, the broadest measure of U.S. economic activity, fell as expected, showing the economy was still in a slump. But the 1 percent drop beat expectations by 0.4 percentage points and seemed a far cry from the 6.4 percent drop in the first quarter of the year. Even automobiles contributed, adding 0.2 percentage points to the second quarter...

The corporate reporting season, a trudge through Wall Street's second quarter results, has been met with vigorous approval, it seems, in Asian markets. While U.S. markets turned in a mixed day Friday, Asian markets continued to post positive numbers Monday with the Nikkei 225 in Japan rising for the ninth straight session and closing above the 10,000-point mark for the first time since mid-June. The Nikkei index added 144.11 or 1.45 percent, to 10,088.66, while the Shanghai composite index...

U.S. lawmakers say they are at odds with the Obama administration over the General Motors Co. and Chrysler Group LLC dealership closings. Lawmakers want to know the role the Obama administration played in GM's and Chrysler's decisions to close more than 3,000 auto dealerships combined and shutter factories, costing tens of thousands of jobs, The Detroit News reported. The House Judiciary Committee, chaired by U.S. Rep. John Conyers, D-Mich., is to start a two-day hearing Tuesday, with...

China Thursday announced its second-quarter GDP grew 7.9 percent from the same period of last year, thanks to huge fiscal pump-priming and record lending. The National Bureau of Statistics said the measures helped spur the economy from its less robust 6.1 percent growth in the first quarter, blamed on declining exports. The new number put the world's third-largest economy after the United States and Japan closer to achieving overall annual growth of 8 percent this year. China's GDP in the...

University of Maryland economist Peter Morici called on President Obama to abandon the conventional wisdom of the left to pull the country out of recession. Just as President (George W.) Bush's blind adherence to conservative ideology threw America into crisis, Obama must unshackle his policies from liberal group think to succeed, Morici said. Morici said the U.S. trade deficit with China needs to be addressed because until imports are paid for with exports, "inventories pile up and layoffs...

The U.S. House Appropriations Committee agreed to a measure that would force General Motors Corp. and Chrysler LLC to keep auto dealerships open. The automakers have attempted to sever connections with about 3,000 auto dealers in their bankruptcy proceedings. GM has plans to cancel contracts with nearly 1,400 dealerships, while Chrysler closed 789 dealerships last week as part of its restructuring plans. The measure, which would overturn the closures, was approved as an amendment to the...

The home prices index for 20 U.S. metropolitan regions dropped in April for the 33rd consecutive month, a closely watched housing index said. The 20-city index fell 0.5 percent in April compared to March, a smaller decline than most recent months. But the index has fallen 32.6 percent since August 2006, when the prices began their descent. The S&P/Case-Shiller home price indexes report, released in Washington, noted house prices declined sharpest in the pre-recession building boom areas...

The U.S. Federal Reserve said it would continue to buy Treasury bonds and mortgage-backed securities despite hopeful signs of a recovery. The Fed leaned on almost positive sound bites Wednesday, pointing out financial markets had generally improved, and consumer spending had shown further signs of stabilizing. The slowdown is slowing down, the Fed said. In reaction, the Open Market Committee will keep bank-to-bank lending rates near 0 percent and maintain its plan to purchase $1.25 trillion...

The Organization for Economic Co-operation and Development in Paris said the recession was approaching a weak and fragile recovery in developed nations. Recovery is likely to be weak and fragile, and the economic and social change caused by the crisis will be long-lasting, the OECD said in its semiannual economic forecast, released Wednesday. The report upgraded the U.S. economic forecast, from a previous prediction of a 4 percent decline in 2009 to a decline of 2.8 percent. The Chinese...

The global recession is cutting sharply into investment capital for developing countries, the World Bank in Washington said Monday. The World Bank said capital inflows to developing countries dropped to $707 billion in 2008, from a record $1.2 trillion in 2007. This year, foreign capital flowing to developing countries is expected to plummet to $363 billion, the bank said in a statement. The bank warned that slower growth will require tighter and more effective oversight of the financial...