Weak Dollar is not so bad for the whole country
The United States currency continues its fall in relation to Euro. The major reason of the situation occurred I sin the growth of the oil prices as well as in decrease at the housing market.
Moreover the inflation is already a great problem for the whole world but due to the US consumer price report we can see that the US will only have to meet this problem. However this information seems a bit strange as several big companies have already announced the growth of their prices.
Anyway we should underline that the positive thing of the situation is that the weak USD still can contribute to the country’s economy. The next point to be considered is the level of the industrial production that has increased throughout previous month, which was reported by 6 big American companies. For instance Coca-Cola announced the 19% revenue growth for the first quarter of 2008. Moreover, Intel officials said the company was not affected by the recession in the US economy as its profits are more dependent up to international sales. Abbot Laboratories and St. Jude Medical Inc – two medical related companies have also reported the revenue growth from 14 to 27 percent correspondingly. However we will have more data tomorrow after the issue of leading indicators and Philly Fed index.
