The U.S. economy has been hit harder than analysts expected after the Japan earthquake and tsunami. Goldman Sachs reported that "As expected, the hardest-hit sector of the economy appears to be motor vehicle production," Shortages in supply of the key components — notably auto microcontrollers—have led to production shutdowns at US facilities, particularly those owned by Japanese manufacturers." One worry that is rearing its head is the limited number of cars being sent across "will give manufacturers and dealers more purchasing power," which in turn could inflate costs in an already painful economy.
In addition, durable goods orders have decreased. Items such as cars and appliances are down 3.6 percent in April. This is worse than the 2.2 percent forecast that analysts predicted and is proving the effects the slow Japan recovery is having on the U.S. Manufacturing numbers are also weak, according to the Federal Reserve’s reports on regional areas, but economists at Yet Tilton have high hopes for the economy stating that the effects we are feeling from Japan will be “short lived”.