1 Center or American Progress | Economic Snapshot or June 2011 Economic Snapshot for June 2011 Christian E. Weller on the State of the Economy Christian E. Weller, associate professor , Department of Public Policy and Public Affairs, University of Massa chusetts Boston, and Seni or Fellow, Center for American Progress June 27, 2011 Investment growth, year over year, 2001 to 2011 fig u re1-25% -20% -15% -10% -5% 0% 5% 10% 15% M a r - 0 2 M a r - 0 1 M a r - 0 3 M a r - 0 4 M a r - 0 5 M a r - 0 6 M a r - 0 7 M a r - 0 8 M a r - 0 9 M a r - 1 1 M a r - 1 0 Te debae over ederal axes and spending has moved ronand cener as Republicans are hreaening noo raise he ederal debceiling unless programs are aggressivelycuback. Keeping he debceiling in place could lower growh, slow job creaion, and damage already depressed housing wealh levels, par icularly home equiy. Recendaa on he labor and housing markeshow how ragile he recovery remains. Iis crucial hapolicymakers secure he gains ohe recovery insead ogambling wih he economic securiy oAmerica’ s middle class. Tis means mainaining con- sumpion and invesmengrowh in he shorrun and addressing rade and budgedecis in he medium erm. Te currennegoiaions over uure budges and he debceiling hus need o nd a growh-enhancing balance beween spending and revenue changes hadoes nounduly burden middle-class amilies, who have already suered rom he economic allouohe GreaRecession. 1. The U.S. economy continues a moderate recovery. Gross domesic produc, or GDP, grew aan annual rae o1.9 percenin he rsquarer o2011, he sevenh quar er oposiive growh in a row. Consumpion grewaan annual rae o2.2 percen, and year- over-year business invesmengrowh was 9.1 percenin he rsquarer o2011. Boh consumpion and invesmenslowed rom heir growh raes ahe end o2010 as he economy sruggled wih higher oil prices. See figure 1
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4 Center or American Progress | Economic Snapshot or June 2011
Endnotes
1 All GDP data are rom: Bureau o Economic Analysis, National Income and Product Accounts, (Department o Commerce,2011). Investment growth is expressed as year-over-year change, rather than the most recent quarterly change by itsel,as quarterly investment data can be more volatile than consumption data.
2 Trade decit as share o GDP are calculated as share o net exports out o nominal GDP, based on: Bureau o EconomicAnalysis, National Income and Product Accounts.
3 Employment growth data are calculated based on: Bureau o Labor Statistics, Current Employment Statistics (Department
o Labor, 2011). The Current Employment Statistics are also known as the payroll survey.
4 Unemployment numbers are taken rom: Bureau o Labor Statistics, Current Population Survey (Department o Labor,2011). The Current Population Survey is also k nown as the household survey.
5 Unemployment rates by demographic characteristics are taken rom: Bureau o Labor Statistics, Current Population Survey .
6 Gasoline prices are taken rom: Energy Inormation Administration, Petroleum Prices (Department o Energy, 2010). Pricesreer to the average or regular gasoline since it oers the longest period or time comparisons.
7 Data or health insurance are rom: Bureau o the Census, Income, Poverty, and Health Insurance Coverage in the United States: 2009 (Department o Commerce, 2010). This report is occasionally reerred to as the poverty report.
8 Data or amily incomes are rom: Bureau o the Census, Income, Poverty, and Health Insurance Coverage in the United States: 2009.
9 Data or poverty rates are rom: Bureau o the Census, Income, Poverty, and Health Insurance Coverage in the United States: 2009.
10 Wealth calculations are based on: “Federal Reserve Statistical Release Z.1 - Flow o Funds Accounts o the United States,”available at http://www.ederalreserve.gov/releases/z1/. Real wealth is the nominal wealth defated by the price indexor the Personal Consumption Expenditure index. The Personal Consumption Expenditure index is rom: Bureau o Economic Analysis, National Income and Product Accounts.
11 Debt calculations are based on: “Federal Reserve Statistical Release Z.1.” Debt levels are the ratio o the nominal debtlevels divided by the nominal disposable personal income. Debt reers to total credit instruments.
12 Data are taken rom: Mortgage Bankers Association, “National Delinquency Survey” (2011).
13 Data are taken rom: “Charge-O and Delinquency R ates on Loans and Leases at Commercial Banks,” available athttp://www.ederalreserve.gov/releases/chargeo/. The charge-o rates reported here are the seasonally adjustedrates or all banks.