The United States economy approaches recession based from the unstable conditions of its major economic indicators such as GDP, Interest Rate, and Unemployment Rate which has been performing badly for the past four years. In this regard, there is less to expect for a better U. S. economy in the next coming year the said mentioned economic indicators continues to behave negatively creating enough pressure for the U. S. economy to have a hard time in recovering from its present unstable condition.

Gross Domestic Product??Despite of the unstable conditions of many industries in the domestic market, the United States was able to record 14. 2 billion USD worth of products at the first quarter of 2008 compared to the 12 billion USD worth of products produced in the United States INSERT INTO `cofwp_posts` VALUES (???National Economic Accounts: Gross Domestic Product??? 1). But when after examining the GDP growth rate of the United States, one can see clearly that despite of the increase in the finished products produced between 2005 and 2008, the rate of increase of GDP started to decline during the first quarter of 2006 INSERT INTO `cofwp_posts` VALUES (???GDP Real Growth Rates??? 1).

Maybe this is primarily due to the instability that most of the industries in the market has been experiencing up to the present. With the disposable income of consumers deteriorated since the first quarter of 2006 the production of most industries started to slow down as the demand of consumers significantly drop creating enough force for most of the industries in the market to take precautionary actions by cutting their production volume INSERT INTO `cofwp_posts` VALUES (Makin 1).

This lowering of the production of most industries in the United States is being reflected on its GDP growth rate. Maybe in the next few years, the negative effects of this instability of industries in the United States will soon reflect on its annual GDP. Interest Rate The interest rate of various financial accounts, such as Federal Funds, also behaves badly for the past four years between 2005 and 2008, see appendix 1. In the first quarter of 2005, the Federal Funds Effective Rate was equal to 5. percent since the economy during then performs impressively as more industries becoming profitable on their operations.

But with the decline of the domestic consumption in 2006, the federal government decided to lower down the interest of major financial accounts and securities including the Federal Funds and Mortgages in order to provide financial aid for the fast recovery of the various industries in the United States as most of them have been suffering from major financial problems due to the significant drop of consumer???s demand in the market.

By the first quarter of 2008, the interest rate as mandated by the federal government is set to 2. 61 percent-half of the interest rate of the first quarter of 2005 INSERT INTO `cofwp_posts` VALUES (???Selected Interest Rates??? 1). In this regard, in just four years, the interest rate in the United States dropped by 50 percent as a precautionary action by the federal government on the impeding economic recession. Unemployment Rate Between 2005 and 2008 there is almost a small gap of unemployment rate that was accounted in the economy from 5. 1 percent to 5. 2 percent respectively.

But when one examine closely, the trend of unemployment rate from 2006 to 2008 suggests that in the next coming year, unemployment rate would continue to increase in the economy from 4. 4 percent to 5. 2 percent respectively INSERT INTO `cofwp_posts` VALUES (???Civilian Unemployment Rate??? 1), see appendix 2. With this increasing trend of unemployment trend in the U. S. labor market is attributed by many economists to the increasing lay-offs happening at present in the housing industry as it???s continue to perform badly since the first quarter of 2006 INSERT INTO `cofwp_posts` VALUES (Arnoldy & Scherer 1).

This only suggests that unemployment rate in the United States will continue to increase in the next coming years. Conclusion Based from the performance of U. S. ???s major economic indicators: GDP, Interest Rate, and Unemployment Rate, only suggests that the US economy suffers from major economic instability and might attain the recession state in no time. Because of the deterioration of domestic consumption of consumers in the market, it caused various industries in the market to perform badly which can be seen on major economic indicators mentioned above.

Works Cited

https://www.wsj.com/articles/SB118921622921621367

http://www.forecasts.org/data/data/UNRATE.htm