This seems like important news:
WASHINGTON (AP) – 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.
I wonder why this isn’t headlines?
UPDATE: Reader points out that it is headlines in some places: New York Times, LA Times, and Wall St. Journal specifically. But it’s not headlines in Frisco, Silicon Valley, and Washington. Here’s the report with the breakout of growth areas (durable goods and consumer spending) and here’s an analysis from the Journal (for subscribers).
“The biggest upside surprise was a larger-than-expected narrowing of the net export deficit, which was the product of a 9.3% rate of gain in exports and a scant 0.1% increase in imports. ? Looking ahead, it is probable that consumer-spending growth is going to cool off as the benefits of tax refunds and mortgage refinancings fade. ? However, capital spending growth is likely to remain firm on the back of much improved corporate profits and stronger domestic output. Most important from the short-term standpoint, however, will be a need to boost inventories in order to replenish depleted stocks and to satisfy final demand. ? it is likely that real GDP growth will be solid in Q4, albeit probably not as robust as in Q3.” — Joshua Shapiro, chief U.S. economist, MFR Inc.
“This report provides further confirmation that the real recovery has begun. The economy was firing on all cylinders from the demand side in the third quarter. Importantly, business-equipment spending continues to strengthen while the strength of nominal GDP growth and productivity gains points to even stronger gains in corporate profits. ? My forecast prior to the release of GDP was 4.2% for Q4 and I have not made any material changes to it following today’s number. ? We see growth remaining significantly above trend in the fourth quarter and we continue to believe that the Fed can raise rates” at its March meeting. — John Ryding, chief market economist, Bear Stearns
Tomorrow, look for Krugman to explain that it really means Bush is a very, very bad man.
See also Megan’s take on these numbers. Her last link is especially interesting; it shows a flat economy in Europe, poor dears.
looks like it’s headlines with the online versions of the New York Times, Washington Post, CNN, ABCNews, Boston Globe, and the Chicago Tribune.
maybe you didn’t see it in the headlines of what you read, though.
interestingly, the story in Fox News seems to want to play that statistic down, saying that the news made a very short-lived boost to the markets:
http://www.foxnews.com/story/0,2933,101686,00.html
Sure, the economy is growing, but where are the jobs? Unemployment claims have only dropped by 5,000 (less than 2%) in September. Payrolls grew by 57,000 in September, but we have more immigrants (legal and illegal) and guest workers (H-1b and L-1) and young people (my 18-year-old son _really_ needs a job) entering the job market every month than that.
Bottom line: Bush won’t be re-elected if he can’t stop the export of good high-paying jobs.
Anyway, I’m doing my part: I got off unemployment insurance, got a good high-paying job, and bought a new motorcycle from our British Allies.
Good for you, dude.
Paul Krugman…oooh! Bad, bad Paul Krugman… who just happens to be right today! As usual!
Consumer spending is “borrowed” anyway- without a real rise in consumer incomes (anybody around here get a 7.2% raise last quarter??? OK, how about a 3% raise? A 2% raise???) this is just temporary.
And, yeah, Krugman’s right- this has happened before.
Inventories are piling up. The Chinese are flipping us the bird on their currency, And our Fearless Leader is spending his time giving lectures on the diameter of his anus.
Go ahead. Keep grasping at straws…
Richard…if you had read it right, I pointed out that it *is* in the washingtonpost.com.