Fantastic news out today on the economy. 4.3% pace GDP growth in the 3rd quarter. That is great. Consumer spending grew at a sprightly 4.2% pace. Our nation has fought back the hurricanes' effects to continue to grow and prosper. http://biz.yahoo.com/ap/051130/economy.html?.v=14Economy Expands in 3Q Despite Hurricanes Wednesday November 30, 12:08 pm ET By Jeannine Aversa, AP Economics Writer Economy Grows at Lively 4.3 Percent Pace in Third Quarter Despite Gulf Coast Hurricanes WASHINGTON (AP) -- The economy grew at a lively 4.3 percent pace in the third quarter, the best showing in more than a year. The performance offered fresh testimony that the country's overall economic health managed to improve despite the destructive force of Gulf Coast hurricanes. The new snapshot of economic activity, released by the Commerce Department on Wednesday, showed the growth at an even faster pace than the 3.8 percent annual rate first reported for the July-to-September quarter a month ago. The upgraded performance reflects more brisk spending by consumers and businesses as well as more robust investment on residential projects than initial estimates revealed. "I've got some good economic news for our nation," President Bush said at a fund-raiser benefiting the Senate candidacy of Maryland Lt. Gov. Michael Steele. "America's workers and businesses have overcome the challenges of two hurricanes and high energy prices." "In anybody's book this is an outstanding performance for the economy," agreed Ken Mayland, president of ClearView Economics. On Wall Street, the positive report gave stocks a lift. The Dow Jones industrials gained 28 points and the Nasdaq was up 7 in morning trading. The third-quarter's showing marked a sizable pickup from the 3.3 percent increase in gross domestic product registered in the second quarter of this year. GDP measures the value of all goods and services produced within the United States and is the best barometer of the nation's economic standing. The 4.3 percent growth rate matched the performance posted in the first quarter of 2004. The last time economic activity was higher was in the third quarter of 2003, when the GDP soared at a blistering 7.2 percent pace. The upwardly revised reading for GDP in the third quarter also exceeded the expectations of business analysts. Before the report was released, they were forecasting the economy to clock in at a 4 percent pace. Consumers and businesses did their part to keep the economy rolling -- even as they coped with elevated energy prices during the third quarter. The lifeblood of the economy, consumer spending, grew at a sprightly 4.2 percent pace in the third quarter, stronger than the 3.9 percent growth rate previously estimated. The new figure marked the fastest pace in consumer spending since the final quarter of 2004. Businesses boosted spending on equipment and software at a 10.8 percent annual rate in the third quarter. That was better than the 8.9 percent growth rate first estimated for the period and close to the 10.9 percent growth rate seen in the second quarter. Investment in housing construction and other residential projects grew at a brisk 8.4 percent pace in the third quarter. That was up considerably from the 4.8 percent growth rate initially estimated but was down from the 10.8 percent pace registered in the second quarter. An inflation gauge tied to the GDP report showed prices rising at a 3.6 percent rate in the third quarter, slightly less than initially estimated for the period. When food and energy prices are excluded, "core" inflation-- which the Federal Reserve watches closely -- actually moderated. Core inflation rose at a rate of 1.2 percent in the third quarter, a tad less than first estimated and down from a 1.7 percent pace in the second quarter
It is good that we have growth. Sadly due to Republican policies most of the benefits are going to the upper few percent. Two Americas. One doing better; one doing worse. As Brazil and others have shown, you can have a lot of GDP growth with very little trickle down. Many elitists focus only on the GDP numbers, stock market or their own situation and don't see the bigger picture..
glynch, thanks for the class warfare lecture. Have any facts to back this up? I don't see ANY in your post. You really have a deeply ingrained, poisoned mind. Always so negative. glynch I fear for your mental well-being.
with GM having its bond rating down graded to almost junk status, I'm very skepital of any economic reports. especially about consumer spending. I just think there is a consumer credit bust right around the corner. but I'm no economist so what I do I know.
"And remember, my fellow Americans, when you send in those income tax checks this year, Halliburton is spelled with two L's"
Yeah I can tell you're not an economist. One auto company is a pretty pathetic indicator of the overall economy.
yeah, the nation's 3rd largest company and largest auto maker is a very poor indicator of what is going with the economy.
and though some of the airlines are starting to come around there certainly has to be one that goes under for good. oh and whats the deficit up to now? sooner or later china will force us to raise our interest rates dramatically.
Yeah - this is a real concern. Much of the recent growth has been financed by massive debt, much of it from reverse house mortgages and from the "feeling" of being rich by inflated housing prices. Hopefully housing prices just stablize rather than tank, or bad things are going to happen.
Just a side note. Companies that have announced layoffs in the past month… gm merck mci ameriquest at&t mbna sbc pfizer ford motor new century mortgage tribune media services centurytel citizens communications gmac valor eds oce general electric hewlett packard citibank gmc nasa qwest bristol myers squibb anthem blue cross bath iron works alltel tower automotive symantec
I know a few guys who made a lot of money in pharmaceutical sales. I couldn't believe it when I heard Merck was laying off.
Huge deficit spending will always fuel a economic boom...till it comes time to pay up. But you know that, that's what Republicans have been telling the public for 50 years.
It is truly unbelieveable what goes through the liberals' minds. They are unable to comprehend the idea of a metric that measures the overall economy. They insist upon looking for any sliver of negative news to broadcast to the world their sermon of doom and gloom. I feel sorry for your negative view on life. Open your eyes, our country's economy is booming in case you didn't know.
i'm not going to be a dick like texxx but it really isnt an indicator the economy anymore. GM and F are so bloated due to their unions that their companies are dying because of it. plus its not like people are not buying cars...they are just not buying the fords and gms anymore. they are switching to better cars like toyotas. america has been making an inferior product for years and now it is blowing up on them since oil has blown up. now if you want to look at a company like GE then you have a massive company that is doing excellent right now.
It absolutely is a horrible metric. Choosing one single company to measure a country's economy is TRULY ONE OF THE STUPIDIST THINGS THAT I HAVE EVER HEARD IN MY LIFE. Just ignorant and stupid.
