Absolutely fantastic news for the US economy. Looks like it's really coming back strong. The economic recovery continues in a solid fashion! From CNBC.com Economy soared in third quarter The gross domestic product jumped to an annualized growth rate of 7.2% in the third quarter. Times are supposed to be good, but not this good. The economy grew in the third quarter at the fastest pace since 1984, the government said this morning, sending stock index futures higher. The gross domestic product grew at an annualized rate of 7.2% in the third quarter, the Commerce Department reported, up from 3.3% annualized growth in the second quarter. Economists were expecting the economy to grow at a still-very-strong 6% rate, but this number blew the forecasts away. Indications of healthy economic recovery should be good news for stocks, John Brady, senior vice president at Man Financial, told CNBC’s “Squawk Box.” “The bulls will be firmly in control of stocks and stock futures today,” Brady said.
Since this is the D&D forum, I think I would like to state that Bush will be UNSTOPPABLE in the election with a stong economy in 2004. I'm sure the Bush-haters realize that. I wonder if they're cheering for bad economic news to advance their own candidate.
no..i'm not saying that...i really hope you find a new job soon. my point is that it's better to read a story like this when you're looking for a job than it is to read one that says the economy isn't growing at all.
Liberals, since you have been so quick to A) Lay blame on Bush for a poor economy B) Criticize the tax cut as being useless you now have the chance to either A) Recuse yourself from all economic and financial debates B) Admit that the President alone does not drive the economy C) Applaud President Bush for providing leadership to the economy Liberal lunatic fringers, MAKE A CHOICE
I'll pick B&C Please read the sticky at the top of the page re: civility in this forum. http://bbs.clutchcity.net/php3/showthread.php?s=&threadid=64657
I don't know of anyone on these boards who has laid all the blame for the ecomic troubles on Bush. That doesn't mean that I won't complain about his lopsided tax cuts, deficit spending, government waste etc. I can complain about his economic policies without laying all the blame on him. I'm happy that we have some good economic news and I hope it will lead to more jobs, more support for worthwhile projects, and a more stable America. I hope it's not a case of what Reagan did though. I believe it was Lloyd Benson who said that it's easy to make things seem like they are going great when you are writing billions of dollars in bad checks. But even if it is, I hope that we do get some relief from the problems that we've had lately.
I too was laid off in the third quarter. I am underwhelmed by the "soaring" third quarter economy. I do hope for a strong economic growth (especially job growth), even though I am a known Bush hata. The next few days may be a good time to sell some stock that I have been holding
Economy Grows at Fastest Pace Since 1984 10 minutes ago By JEANNINE AVERSA, Associated Press Writer WASHINGTON - The economy grew at a blistering 7.2 percent annual rate in the third quarter in the strongest pace in nearly two decades. Consumers spent with abandon and businesses ramped up investment, compelling new evidence of an economic resurgence. The increase in gross domestic product, the broadest measure of the economy's performance, in the July-September quarter was more than double the 3.3 percent rate registered in the second quarter, the Commerce Department (news - web sites) reported Thursday. The 7.2 percent pace marked the best showing since the first quarter of 1984. It exceeded analysts' forecasts for a 6 percent growth rate for third-quarter GDP (news - web sites), which measures the value of all goods and services produced within the United States. "This is a gangbuster number. Everything came together for the economy in the third quarter," said Mark Zandi, chief economist at Economy.com. "The key challenge now is jobs," he said. The economy's recovery from the 2001 recession has resembled the side of a jagged cliff; a quarter of strength often has been followed by a quarter of weakness. But analysts are saying that pattern could be broken, considering increasing signs the economy finally has shaken its lethargy and is perking up. Near rock-bottom short-term interest rates, along with President Bush (news - web sites)'s third round of tax cuts, have helped the economy shift into a higher gear during the summer, economists said. The next challenge is making sure the rebound is self-sustaining, they said. Democrats, however, argue that the tax cuts contributed to a record budget deficit in the recently ended 2003 fiscal year and have done little to spur significant job growth. Although the nation's payrolls grew by 57,000 in September — the first increase in eight months — the economy needs to add a lot more jobs than that each month to drive down the 6.1 percent unemployment rate, analysts have said. The administration has argued that as economic growth improves, meaningful job creation will follow. Bush will be counting on that as he heads into the 2004 presidential election season. The GDP report is "certainly encouraging news for our economy, but we still have more work to do to ensure that every American who wants a job can find a job," said Treasury Secretary John Snow. In other encouraging economic news from the Labor Department (news - web sites), new claims for unemployment benefits last week dropped by 5,000 to 386,000, a sign that layoffs are slowing. U.S. workers' wages and benefits went up by 1 percent in the third quarter, up slightly from a 0.9 percent increase in the previous quarter. Amid signs that the recovery is regaining traction, the Federal Reserve (news - web sites) on Tuesday decided to hold a key short-term interest rate at a 45-year low of 1 percent. Super-low short-term rates may give consumers and businesses an incentive to spend and invest more, boosting economic growth. Economists believe the economy will grow at a slower — but still healthy — 4 percent rate in the final quarter. In the third quarter, consumers ratcheted up their spending at a brisk 6.6 percent annual rate. That was the biggest increase since the first quarter of 1988 and was up from a 3.8 percent pace in the second quarter. Consumers in the third quarter spent lavishly on big-ticket items, such as cars, boosting such spending by a whopping 26.9 percent rate. And, they also spent briskly on "nondurables" such as food and clothes, which grew at a 7.9 percent pace, the strongest showing since the first quarter of 1976. While consumers have been the main force keeping the economy going, there are more signs that businesses are starting to do their part. Especially encouraging was the 15.4 percent growth rate in spending by businesses on equipment and software in the third quarter. That marked the largest increase since the first quarter of 2000 and was up from a 8.3 percent growth rate in the second quarter. Sustained turnarounds in capital spending and in hiring are crucial to the economy's return to full throttle. Economists said business wants profits to improve and wants to be sure of the recovery's vigor before it goes on a spending and hiring spree. The red-hot housing market, powered by low mortgage rates, also contributed to the strong showing on third quarter GDP. Investment on residential projects grew at a 20.4 percent rate, the biggest increase since the second quarter of 1996, and more than three times the 6.6 percent growth rate seen in the second quarter. Federal government spending, which grew at a 1.4 percent rate, was only a minor contributor to GDP in the third quarter. Spending on national defense was flat. But in the second quarter, military spending on the Iraq (news - web sites) war — which grew at a whopping 45.8 percent rate — helped to catapult economic growth. A better trade picture in the third quarter also contributed to GDP growth. But inventory reduction by businesses continued to be a drag on the economy and reduced third-quarter GDP by 0.67 percentage point. And a continuing reluctance by businesses to build up stocks suggest that executives remain wary of the rebound's staying power.
Wow, the pace would have been 8% if businesses hadn't drawn down inventories! This won't do well for any studies which try to discount the effect of tax cuts as an economic stimulus.
BTW, Sorry for all here that lost jobs in this downturn. Hopefully, the upturn will be speedy and all of us can be happily employed. Good luck!
T_J, your hero had better hope that job creation begins before November of next year. If he has a jobless recovery, like Poppy, he will be a one termer, just like Poppy. Additionally, it doesn't look like the NYSE thinks this is such great news. At 10:13 AM CST, the Dow is up 1.63 and the NASDAQ is up 1.55. Sounds like the Stock Market is yawning at your wonderful economic news.
