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Friday 16th of July 2010
July 15, 2010    

Obama’s stimulus plan ‘created more jobs than expected’

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by Kay Murchie
Obama's stimulus plan ‘created more jobs than expected'

The latest quarterly report released by the White House has revealed the multi-billion dollar stimulus package created between 2.5 and 3.6 million jobs.

This was higher than an original estimate of 2.2 million to 2.8 million jobs and suggests the package has been even better for the economy than previously thought.

Furthermore, the report suggested the stimulus may have raised US growth by around 3%.

The positive report will be a welcome boost to the Obama Administration and comes at a time when the unemployment rate in the world’s largest economy remains close to the 10% mark.

Meanwhile the timing of the report came as the US central Bank, the Federal Reserve, revised down its forecast for growth this year.

The minutes of the Fed’s June meeting revealed growth was forecast down by 0.2%, to a range of 3% to 3.5%.

In related news, yesterday the Commerce Department announced retail sales fell by 0.5% in June – the second consecutive monthly fall after a downwardly revised 1.1% fall in May.

Sales were hit by a decline in sales of petrol and cars and were slightly worse than the 0.2% fall expected by analysts.

Meanwhile, on an annual basis, sales were up 4.8%.

However, the monthly figures will no doubt raise fears over the strength of the recovery in the world’s largest economy as consumer spending makes up for more than two-thirds of overall economic activity in the US.

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