Posted on 11/30/2005 6:41:31 AM PST by stocksthatgoup
WASHINGTON (MarketWatch) -- The U.S. economy grew at a 4.3% annual rate in the third quarter, the Commerce Department said Wednesday in its first revision of gross domestic product estimates.
It's the fastest growth since the first quarter of 2004. Read the full release.
A month ago, the government agency estimated real (inflation-adjusted) growth in the period July through September at an annualized 3.8%. Economists were expecting a revision to 4%, according to a survey conducted by MarketWatch. See Economic Calendar.
The economy grew at a 3.3% pace in the second quarter and has now grown faster than 3% for 10 straight quarters.
The economy has grown 3.7% in the past four quarters.
In current-dollar terms, GDP was estimated at an annual rate of $12.6 trillion, up 7.4% from the second quarter.
The upward revision in GDP was largely due to higher spending on nondurable goods and to more investments in homes and in business equipment and software.
As in the earlier estimate, growth was powered by consumer spending and business investments. Residential investments and government spending contributed. Trade and inventories were a drag on growth.
Meanwhile, a key measure of inflation was revised lower. The core personal consumption expenditure price index rose at a 1.2% annual rate in the period, compared with an earlier estimate of 1.3%. All consumer prices, including food and energy, rose at a 3.6% rate, down from 3.7% estimated earlier.
(Excerpt) Read more at marketwatch.com ...
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good news bump... Thanks for a positive post.
And this despite the rise in oil prices. I'm betting that the fourth quarter will be a blow out since oil is now going down.
NYT spin: "The US Gross Domestic Product rose in the last quarter, but that's little relief to LaTonya Washington, a single mother of fourteen living..."
"Worst economy since Hoover."
Film at eleven.
The good news continues!!!!!!!
There was dancing in the streets when the economy showed half of this growth under Klinton.
I hope Paul Krugman is watching her.
Actually, the rise in oil prices could very well be one of the contributing factors in this GDP growth. If I spend more on gasoline this year than I spent last year, then my "contribution" to the GDP is going to go up, not down (all other things being equal, of course). More likely, people will reduce their consumption of other non-essential things to make up for the change in fuel prices -- so while the movie and restaurant industries may have suffered declines as the result of higher fuel prices, the overall net impact on the nation's gross domestic product is likely to be minimal.
Democrats deeply saddened.
I expect a doom and gloom article from Paul Craig Roberts..
Watch the spin - this overheated economy will cause interest rates to soar, hurting every American.
Democrats sad. Hillary to create a soup line, and hold a press conference, to demonstrate that they exist.
Under a Republican administration, any good economic news is only helping the top 1% rich guys while the average family is still in the doldrums and the poor are still starving.
Should not be the case, since we are talking about inflation-adjusted growth.
Paul Craig Roberts is in a crisis meeting with Alan Tonelson and Paul Krugman at the moment, but I'll make sure he gets the message.
I don't know what goes on inside Robert's head, but I do know that if enough people read his perpetually pessimistic columns, there would be a run on razor blades at all the stores. Jeez, is this guy depressing to read! I have to wonder if he's on suicide watch.
LOL!
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