The Guardian: The US economy is rolling to a recession

On Wednesday, unpleasant news caused a strong drop in shares on Wall Street, writes Inopressa.ru with reference to the British The Guardian .

The gloomy report of American plants and the signs that the growth of employment is slowed down, instilled the fear that the recovery of the largest economy of the world is postponed, the newspaper explains. The alarming atmosphere was aggravated by the more weak ones than expected, indicators of Europe and China.

The first impetus for sales was a monthly report on the creation of jobs in the private sector: in May only 38 thousand were added. The industrial production index compiled by Institute for Supply Management has fallen to 53.5 - this is the lowest level from September 2009, much lower than forecasts.

The expired month was a nightmare for the US economy, and now the situation is even worsening, Mike Riddell from M&G notes. Almost all indicators do not justify hopes, he added.

Data on industrial production in other parts of the world also indicate a slowdown, the newspaper writes. In China, the procurement index fell from 52.9 to 52 - approached 50, separating the expansion from the reduction. The Eurozone index fell to a minimum in 7 months: 54.6.

The prospect of weakening global growth reduced oil prices by about 2%, concludes the publication.

A large deficit of the current account in the United States also makes the dollar more vulnerable than the euro, before the shocks in the bond market, wrote The Financial Times last month. In the United States, consumers in the ears in debt and, possibly, will not withstand the increase in interest rates. In the medium-term perspective, the risks for the American dollar are much larger than the threat hanging over the euro due to "Greek drama".

Meanwhile, in the April of April, US President Bark Obama promised to reduce the budget deficit of $ 4 trillion in a maximum of 12 years.

It is predicted that by the end of this fiscal year, the US budget deficit will reach a record mark of $ 1.5 trillion. This is about 11% of GDP and half of the still not approved budget of the country for 2011 fiscal year. According to the plans of the US administration, by 2015 the deficiency will be reduced to a level of 2.5% of the GDP volume, and by the end of the current decade to the level of 2%.

According to the President of the United States, a reduction in the deficit should go as part of a general reduction in expenses, the need for which he speaks from the moment he came to power.