US economy is on the rise, recent FED Reserve reports prove

Chicago-Sun Times, June 4

th
2014 (No specified author, Economy improving across US: Fed survey,
http://www.suntimes.com/business/27869810-420/economy-improving-across-us-fed-
survey.html#.U49t__ldVYc DOA: 6.4.2014 EJMG)
A Federal Reserve survey shows the U.S. economy strengthening over the past two months in areas
from manufacturing and construction to retail sales and bank lending. Seven of the Feds 12 regions
Boston, New York, Richmond, Chicago, Minneapolis, Dallas and San Francisco reported moderate growth during the early
spring, while the remaining five described growth as modest, according to the Beige Book survey released Wednesday. Retail sales
were reviving, helped by pent-up demand for new cars after the harsh winter. Manufacturing was
expanding in all regions, along with lending. One weakness was home sales, held back by a tight supply.


Rising demand for fuel indicates Global economy on rise, US and China prove
Reuters, June 3
rd
2014 (Florence Tan, reporter for Reuters,
Brent holds near $109 as U.S., China economies seen improving, Reuters International,
http://in.reuters.com/article/2014/06/03/markets-oil-idINL3N0OK0G020140603, DOA: 6.4.2014 EJMG)
SINGAPORE, June 3 (Reuters) - Brent edged up near $109 a barrel on Tuesday, just off a three-week low, as positive
economic indicators from the United States and China lifted the fuel demand outlook in the world's two largest
oil consumers, offsetting a rise in OPEC production. Tuesday's survey results on Chinese services and manufacturing activity reinforced hopes
that the nation's economy is stabilising after the country's growth slowed to an 18-month low in the first quarter. July Brent crude rose 7 cents
to $108.90 a barrel by 0351 GMT after touching the lowest since May 13 during Monday's session. U.S. crude for July delivery
edged up 4 cents to $102.51 a barrel. In May, China's services sector grew at its fastest in six months,
according to an official survey. China's export orders improved although factory activity still contracted, a private bank survey
showed. "Both (surveys) are coming largely in line with expectations, that's why we're seeing oil prices not really reacting at this stage," said
Ben Le Brun, a markets analyst at OptionsXpress in Sydney. "In the Asian session, we're still playing a little bit of catch up to the U.S.
manufacturing data." U.S. manufacturing activity expanded in May, putting the world's top economy
seemingly on a firmer path to recovery, but a slowdown in euro zone factory growth boosted expectations of policy easing by
the European Central Bank. "We want to see that improving picture in the global economic sense, which will indicate that there will be that
demand there to pick up the oil supply," Le Brun said. AMPLE SUPPLY Ample supply weighed on oil prices, with OPEC's output forecast to rise to
its highest in three months in May on increased supplies from Angola and Iraq.

Current economic shrink was expected due to weather, long term prospects are good
for US
KurtzMay 29
th
2014 (Annalyn Kurtz, Senior economic analyst at CNN, U.S. economy shrinks, but it's not a big deal, CNN News,
http://money.cnn.com/2014/05/29/investing/gdp-economy/ DOA: 6.4.2014 EJMG)
Brace yourself. The U.S. economy looks like it went on a roller-coaster ride at the start of the year. Revised numbers released Thursday show
the economy shrank in the first quarter, marking the first downturn since early 2011. Gross domestic product, the broadest measure of
economic growth, fell at a 1% annual pace, according to the Bureau of Economic Analysis. A slump was entirely expected, and
economists aren't too worried. They forecast a bounce back in the spring. Take for example Joseph
Lavorgna, chief U.S. economist at Deutsche Bank. He predicts the economy will rev up, growing at
more than a 4% pace in April through June. In a note to clients this week, he cautioned investors not to worry if the first
quarter numbers were lousy. The January through March period tends to be the slowest for growth, he noted,
and this year, colder than usual weather stunted retail sales, international trade and the housing
market. Businesses also cut back on investments in new equipment and buildings, and state and local
governments reduced their spending. The downward GDP revision came primarily from a decline in
business inventories, meaning companies weren't quick to re-stock their shelves or stockpile goods to
prepare for future sales. Stuart Hoffman, chief economist for PNC Bank, points to the auto sector as
an example. When snow and ice kept customers away from auto lots in the winter, automakers slowed their
production lines. "There were too many unsold cars on the lot, so they cut production, and that holds the economy back," Hoffman said. "Now
those cars are selling again and production will come back." Indeed, data released in the last few months now shows auto sales are
booming, both the manufacturing and services sectors are improving, and job growth is solid. "The first quarter was disappointing, but rather
than view that as an omen of a recession or the first of a down leg in the economy, I see the seeds of a big bounce back in spring," Hoffman
said. It's important to remember that the first quarter GDP numbers aren't final. They will be revised by the government at least two more
times over the next couple of months. The government initially said first quarter GDP grew at a 0.1% annual rate. Today's figure is a revision.