Econ 202

The United States has one of the strongest economies in the world. However, the question is how it one of the largest economy's today is. To get a better understand of this question one must examine the data. From examining the latest economic indicators, one can say the United States economy has been healthy and growing steadily. Yet, even though the data shows that, the numbers of production has dropped a little compared to the months before. Nonetheless, the U.S. economy is still strong and growing but just shifted its scarce resources to invest in capital. From comparing the data between final goods and services to the data of construction, one can see the shift in the recent months. However, the question is why the shift from production to investment in capital. One can assume that this shift was due to the season.

It is true that the level of production has decreased compared to the previous months but it is still higher than last year's numbers. As the data shows in such economic indicators as the MONTHLY WHOLESALE TRADE: Sales and Inventories and the FIRST QUARTER 2006 ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT U.S. MANUFACTURING, MINING, AND WHOLESALE TRADE CORPORATIONS. Even though the indicators show, a drop in production shipping of manufactured durable goods has increased. New orders have decreased but this can be related to the summer season. This can be due to two reasons as some labors increase the work hours in the summer to increase their income. Some other labors will take time off from work to enjoy their leisure and go on a vacation out the country or just spend their time resting. However, the number of construction spending and projects increased.

This can be because the summer is the best time to work to get construction projections done. As the weather is not really a problem except the heat. Both the private sector and public sector has increased in construction projects such as new highways, office buildings, improving transportation services and so on. The VALUE OF CONSTRCTION PUT IN PLACE - SEASONALLY ADJUSTED ANNUAL RATE economic indicators shows an increase on all construction projects. This means new jobs and future new jobs are being created this summer. The summer season also brings in a number of new jobs and labors. This time is being used towards investment in capital and creating new jobs. It makes sense to shift from