Economic Indicators

Various economic indicators portray different results, depending on the situation within any state. In the US the recent construction of the family houses dropped to the lowest level within the last seventeen years. The interest rates are expected to increase due to the powerful forces and the million investors who are actually beyond the Fed’s control. In the employment sector payroll employment released in 2006 indicated that the average payroll growth was at 206K per month.

Payroll remains at an increasing trend the previous years.

The major components of the real GDP within the first quarter portrayed a continuing brisk real consumption growth, rising up at a 3. 8% annual rate in the first quarter and that is after an increase of 4. 2% in the fourth quarter (U. S. Department of Commerce Bureau of Economic Analysis) GDP: recent trends historically.

The released data in May 2007 indicated that the U. S. real GDP rose at a low annual rate of 1. 3% in the first quarter, followed by a reasonable gain of 2.

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5% in the fourth quarter of the year; in chart 3 below. Within the first quarter the real GDP rose by 2. 1% which recorded change as compared to the same quarter in the previous year, (chart 3). There was a record in decrease, a full percentage point less than the average annual rate of 3. 1% of the real GDP growth for the last ten years that cuts through the first quarter.

The ten year average real GDP growth was reflected in the four quarters through fourth quarter (National Bureau of Economic Research Recession dates) (Rizzo Recent trends in the Real GDP).

GDP Trends – 2 charts The historical trends indicated strong GDP growth contrary to the weak real GDP growth experienced this year. Then there was the second one which occurred within the first two quarters of 2003. This found when the economy was at a dangerous state, since it was moving so slow together with job-loss recovery that followed the recession of 2001.

The Economist Slow Road Ahead). The economic theory suggests that the potential real GDP growth controls the rate of the actual real GDP growth, in the long run (Chart 4). This was viewed to have caused the potential real GDP growth to slow (U. S. Department of Commerce Bureau of Economic Analysis). Due to the current recession it is predictable that the GDP will decrease in the next few years even with the economic recovery plan. How CISCO is affected by the GDP trends in US

The growth rate in the GDP has made the Cisco Company to alter its view on the overall economy. The positive growth rate has made the company to expand into the new markets. This has seen the increase in the Net sales of the company in the fiscal first quarter by 17. 1%. This was rise was billion $1. 4 from the initial billion $1. 1 that was in the previous years. The product sales of the Cisco systems also increased due to the GDP trends (IST Strong gear sales lift Cisco net up 29%).