U.S. GDP Contracts While Unemployment Rises

Many home business owners are being affected by the economy right now. However, even though leaders keep trying to talk about “economic green shoots”, it is far from certain that they will remain in place. Indeed, some of the optimism about the economy seems to be waning. Today, two important indicators put a damper on the economic party:

1. U.S. GDP has contracted.

2. Unemployment claims jump.

The U.S. has seen continued contraction in GDP, and unemployment claims, after slowing a bit, are now jumping again to higher levels. The GDP news has a silver lining, though; it contracted by less than expected. The jobless claims continue to be a problem. As long as unemployment continues to rise, it will be difficult to make inroads in other aspects of the economy.