According to the most recent data from the Conference Board, the US economy is expected to expand modestly in the next couple of months. This projection is taken from different indicators and data which suggest a constant increase in the last couple of months.
The leading indicator of this projection is taken from the combined data from ten different indicators. This shows a steady increase of 0.2% since October, which followed an increase of 0.5% in September, and a decrease of 0.4% in August.
The figures presented in this report do not take into account the damages and the effects that Hurricane Sandy has caused the economy. Other than this incident, the debates on fiscal cliff are not taken into account as well.
As expected, economist from the Conference Board Ken Goldstein anticipates that the mentioned events will cause adverse effects to the economy particularly in home construction and customer spending. The forecast only covers short term effects since it is yet too soon to measure the impact of the calamity and controversy for long term results.
Despite the obvious negative impact of these incidents, there is still positive news from other sides of the country. In Nebraska and Ohio, for instance, farmers are reported to have a highly profitable year despite the worst drought that has hit both states in half a century.
Due to high insurance claims and prices, income for farmers will possibly increase to as much as 6.9% which roughly translates to about $144 billion. This amount has exceeded the $139.3 billion that the government has estimated for the month of August.
Fields that have been parched since June get twice the insurance payout. Basically, it is the insurance that saved many farmers from debit. Kyle Wendland’s farm in Iowa, for instance, was saved by crop insurance after 11% of his soybean and 36% of his corn yield dropped.
Last year, 0.9% of the US economy was attributed to farming. It generated a total of 11% of all exports and provided jobs for around 2.6 million laborers. This data from the Bureau of Economic Analysis shows the biggest contribution of farming to the US economy.
In light of the modest economic expansion, farm cash receipts in the United States are expected to gain 3.7% or $402.5 billion dollars next year. This is a huge increase from this year’s $388.2 billion forecast for 2012.
Food Inflation by Next Year
Despite the good figures, the government still predicts possible accelerated food inflation by next year. This inflation will include supplies for bake, meat, and dairy goods. This goes to show that insurance can save farms but it can do little to improve food supplies in the future. To ease the impact, the United States is set to add more production of goods from other nations.
While things get complicated in the agriculture market, the same conclusion can be gathered regarding the economy as a whole. The modest expansion is still expected despite the calamities, controversies, and setbacks that the country is currently facing.
This report gives hope for many unemployed Americans with bad credit. The possibility that the country is heading for a better financial status may not hurt regular citizens as well. However, it does not always follow that good predictions follow good results.
A considerable percentage of the American population still relies on bad credit loan to get through their financial needs. More than anything, this is reflective of the fact that there is still a considerable number of Americans who currently have bad credit written all over their credit report. The prediction for next year’s economic status may not directly provide solutions for those with financial problems, but it will somehow give a reasonable positive year ahead.