What is going on in the economy and how will this effect our business in our state of Ohio What should be done to correct the current situation if anything - Essay Example

What is going on in the economy and how will this affect our business in our of Ohio? What should be done to correct the current situation if anything? What is going on in the economy? The current state of the USA economy is promising and sound enough to create confidence for continued positive growth. According to the Bureau of Statistics Analysis data that was released on the 15th of April 2015, the economy of the USA continued to grow, with a 2.2% increase in the annual growth of goods and services produced during the fourth quarter of 2014 (BEA, n.p.).

Additionally, according to the same statistics, the real GDP in the USA economy increased by 5% for the third quarter of 2014 (BEA, n.p.). Further, the real disposable income for the USA population increased by 0.2%, according to the Bureau of statistics data of February 2015. The leading contributors to the growth of the economy among the twenty two industries in the USA were finance and insurance, real estate and rental and mining industries (BEA, n.p.). On average, the personal incomes of the states increased by between 0.6% and 1.5%, which on average amounted to an increase in the all state’s personal income growth of 1% for the fourth quarter of 2014 (BEA, n.p.).

The Real gross domestic product (GDP) of 49 states also increased in the fourth quarter of 2014, with the non-durable manufacturing industry and the professional and business services being some of the industries that contributed largely to the growth of the states’ economies (BEA, n.p.). Nevertheless, an unusual trend has been noticed of the USA economy, which has continued to disappoint economists even more, considering the fact that there was a great expectation that the retail and durable manufacturing industries would grow significantly in the first quarter of 2015 (Ro, n.p.).

The USA economy had indicated a significant growth in employment in the fourth quarter of 2015, which was the basis of the economists predicting a growth both in the retail sales and the durable manufacturing industries in 2015 (Ro, n.p.). Further, statistics have indicated that exports by the USA continued to shrink in the months beginning the year 2015, with the exports for February 2015 according to the Bureau of Statistics data indicating that the USA exported gods and services worth $186.

2 billion and imported goods and services worth of $221.7 billion (BEA, n.p.). How will this affect our business in our state of Ohio? What this status of the USA economy means for the frozen food manufacturing business in the state of Ohio is that the business is set for better days ahead. This is due to the fact that the personal income, disposable income and GDP of the states and the overall USA has been increasing, which means better opportunities for food manufacturing business to sell more products.

Ohio is the leading processed food manufacturing state in the USA (Ohio.gov, n.p.). The average growth in personal income for all the states in the USA for the fourth quarter of 2014 was 1% (BEA, n.p.). This means that the USA population has increased disposable incomes to spend on manufactured food, since the non-durable manufacturing industry of the USA has been increasing its overall contribution to the USA GDP. This means that a business in this industry will continue to sell more, as individuals with more disposable incomes will easily purchase processed instead of home-cooked foods.

However, criticism on this argument would be that factors such as health issues would affect the purchasing of processed foods sale, as people are increasingly becoming sensitive of the negative implications of processed foods on personal health. This argument would be countered by the fact that it is not the processed, but rather junk foods that have negative implications on the individual health. What should be done to correct the current situation if anything? In the USA, there was a trade deficit of $35.

4 billion for February 2015, a largely conspicuous economic figure considering that it only accounted for one month (BEA, n.p.). on the other hand, Ohio’s Merchandise exported was worth at $50.5 billion in 2013 (Ohio.gov, n.p.). Additionally, the states accounted for 3.2% of the total USA exports, and it ranks as the ninth largest state exporter in the USA in 2013, always ranking among the top ten in the list of highest exporting states in the USA (Ohio.gov, n.p.). Therefore, to correct this situation, the government needs to promote exportation, through reducing the taxes and other charges associated with exports, to ensure increased exportation of the USA manufactured goods.

Works Cited Bureau of Statistics Analysis (BEA). U.S. Economy at a Glance: Perspective from the BEA Accounts. US Bureau of Statistics Analysis, April 15, 2015. Retrieved April 18, 2015. From: http://www.bea.gov/newsreleases/glance.htm Ohio.gov. The Ohio Food Processing Industry. Ohio Department of Development, March 2005. Retrieved April 18, 2015. From: http://development.ohio.gov/ Ro, Sam. Something weird is going on in the US economy, and its not good. Business Insider, Mar. 27, 2015. Retrieved April 18, 2015.

From: http://www.businessinsider.com/us-economic-growth-is-tumbling-2015-3