Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Thursday, October 30, 2003

US Growth at Stongest Quarterly Rate Since 1984

An annual rate of 7.2% during the last quarter, that's quite a pace. Which makes the earlier lack of jobs growth even more mysterious. The numbers are down again this week, but it's still a crawl. Also, I have a feeling that some of Bush's strongest critics kinda stitched-themselves-up by blowing too hard on the lack of front-loading on the stimulus package. Between the war and the tax cheques (and the 1% interest rate) the US economy has been getting a hell of a stimulus kick: the big question now is can this be sustained. At this rate obviously not, but at a more modest 3-4%, only time will tell.

The economy grew at a scorching 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 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, which measures the value of all goods and services produced within the United States. 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.
Source: Yahoo News

No comments: