Alcoa and Arcelor Mittal Essay

1317 Words Feb 19th, 2011 6 Pages
Security Analysis
Alcoa and Arcelor Mittal

Economic Analysis

TheUnited States, despite its previous struggles, still finds itself as the most powerful economy in the world with a per capita GDP of $46,000. The United State’s is able to maintain its lead largely in part to the country’s market oriented economy. Currently, the President, in conjunction with government is attempting to bring the United States out of the contraction that plagued the economy for the past few years. The global economic downturn in 2008, spurred by the sub-prime mortgage crisis, and investment failures played a significant role in a GDP contraction rivaled only by the Great Depression. With the onset of technology over the past decade, the United States
…show more content…
The future for the United States economy doesn’t appear too bright, with many economist fearing a “double dip” recession. A double dip recession would occur in the event that the government stayed away form its extremely low interest levels, leading the country into a serious wave of inflation. This raise in interest levels would ultimately raise the unemployment rate, while skyrocketing commodities, both problematic to the economy. Many consumers in the United States have already lost confidence in the market. This notion is supported by the fact that the personal saving rate has tripled in the past three years from 1.8% in 2007 to 5.2% in 2010. Economist project that this number will grow over the course of the next three years until consumers feel confident about the market. Overall the economy is projected to double dip than gradually rise.

Steel Industry Analysis

Currently, crude steel production across the world has increased steadily since April of 2009 reaching a production peak in April of 2010. This peak came in response a 21.3% decline in steel production in March of 2008. Domestically, steel production increased seventy-five percent in the United States in 2010 and appears to grow in the future. The World Steel Association (WSA) claims that global steel output has increased since 2009, an estimated 35.7 %. Despite the current economy and its sensitivity, the steel industry appears immune. Currently, the steel industry has seen

Related Documents