The statistics of third quadrant took the American economy to GDP growth of 5%, but there was in corporate profits. The decline was at high to an extent of below 4%. This decline later resulted in last quarter of 2014, which bumped the progress growth slow at the end of the year. The end did not proved to be strong and vigor for US economy (Roberts, Bryan, & Beggs, 2014). The report was an indicator as well as it brought hope to American economy. Focusing on the earlier quarter and start of the year, there were declines in all the factors as well as in the GDP of the State’s economy. The initial capacity and position of the people were not established and steady.
The later second and third quarter brought boast in the normal household as well as to other parts of live styles and economy. The petroleum prices fell to the highest decline in the last two decade and reach to the low prices of nine years back prices (Thompson, Wyatt, Whistance, & Meyer, 2011). This decline raised the consumer confidence in almost every part of the world. That confidence brought people towards buying and made trend towards it. However, the companies in the United States faced a blow as well. Even though, the strengthening dollar brought effective goods from the world on cheaper rates but the collapsing economies decline the demand of US products which cause the diminution in exports as well. This diminution causedtrade gap between the exports and imports leading to decline in the GDP as well as in economic growth.
The factors influenced the capital spending reined in businesses. The effects mainly impacted on items especially after the inclinations of second and third quarter of the 2014. “Outside of consumer spending, it’s hard to argue for a lot of momentum but if consumers do keep up their spending, as we add jobs and wage income increases that should lift a lot of boats” (Mitchell, 2015).Consumer spending was always remained the key to increase the momentum and rapid growth for an organization. There is no scope of demanding or estimating the growth by ignoring the consumer spending. Due to the declines in the later part of 2014, customers spending were low and as a consequence consumer had lost their confidence in buying. There was a need to increase the wages and personal capacity of the consumer to enhance the momentum.