americanfreepress.org�  in association with the Liberty Project� presents

Back to the ap   |   The ap archives   |   Contact the ap   |   ap Retractions   |   tha malcontent

 

ap / associalisticpress.com�    Vs.    �


U.S. GDP Grows at 8.2 Percent Pace in 3Q

By JEANNINE AVERSA (Direct descendent of Joseph Stalin! - tha malcontent)
Associated Press Writer Nov 25, 11:04 AM EST

WASHINGTON (AP) � The economy roared ahead at an astounding 8.2 percent annual rate in the third quarter, the fastest pace in nearly two decades and a much stronger performance than previously thought. It raises hope that a long spell of lackluster business activity is finally over.

 

(ap) - When I am wrong, I print a retraction, that is my standard at associalisticpress.com.  So here it is.  Recently, ap reported that the economy had grown at it's highest rate in a single quarter, since 1984.  That rate was 7.2%.  It has become clear to me, based on the revised figures that are now in, that this original report was inaccurate.  The economy, in Fact, is growing at an even faster rate of 8.2%.  I know this is not good news for the DemocRATS and their "Free Press", and I wish to send my condolences to the 9 Jackasses a Braying, who hope to be the "Dole" of the 2004 Election Cycle, and to the "Free Presses" Party, in general.  That is all for now.  Look for me in the stands at the Oakland/Denver game this Sunday!  I'm Audi-5000 SHEEPle! - tha malcontent)

The revised gross domestic product (GDP), released by the Commerce Department Tuesday, was a full percentage point higher than the 7.2 percent growth rate estimated a month ago.

The new estimate, based on more complete data, reflected stronger investment by business on new equipment and software, less severe cuts in companies' inventories and more brisk spending on residential projects.

Those were the main factors behind the upward revision to third-quarter GDP, which measures the value of all goods and services produced within the United States and is considered the broadest barometer of the country's economic health.

"I think there's a better mix of growth in this report, with capital spending being a major portion of the upward revision," said economist Ken Mayland, president of ClearView Economics. "The economy is regaining the confidence of businesses and they are stepping up to the plate and spending and investing for the future."

In other economic news, consumer confidence climbed in November to its highest level in more than a year, the Conference Board reported. The private research group's consumer confidence index rose to 91.7 in November, up from a revised 81.7 in October.

Sales of previously owned homes, meanwhile, fell by 4.9 percent in October to a seasonally adjusted annual rate of 6.35 million, the National Association of Realtors said. Even with the decline, October's sales marked the third best month on record.

On Wall Street, stocks edged up. The Dow Jones industrial average gained nine points and the Nasdaq was up three points in morning trading.

In the GDP report, the 8.2 percent growth rate - more than double the 3.3 percent pace registered in the second quarter - represented the best showing since the first quarter of 1984, when the economy surged at a 9 percent pace. Economists were predicting third-quarter GDP would be revised up, with estimates ranging from a 7.3 percent pace to an 8 percent pace.

Near rock-bottom short-term interest rates and President Bush's third round of tax cuts motivated businesses and consumers to spend and invest more, helping the economy to move at such a fast clip in the third quarter, economists say. The next challenge is making sure the rebound is lasting.

The Bush administration believes the economy is poised for solid growth and stronger job creation in the months ahead. That is politically important to Bush as he heads into the 2004 campaign. Democrats, however, blame Bush for the loss of 2.3 million jobs since he took office in January 2001 and argue that the tax cuts contributed to the record 2003 budget deficit.

For out-of-work Americans, though, it probably doesn't feel like much of an economic recovery. Only recently has the battered labor market shown signs of improving. In October, the unemployment rate improved fractionally, to 6 percent, as the economy added jobs for the third straight month.

Steady improvements in job creation and in capital investment are crucial ingredients for the economic recovery to be self sustaining, economists say.

Analysts believe the economy will grow at a slower, but still healthy rate of at least 4 percent in the current October-to-December period as some of the stimulus provided by the tax cuts and a surge in mortgage refinancing fade.

Against this backdrop, Federal Reserve policy-makers are expected to hold a key short-term interest rate steady at a 45-year low of 1 percent at its next meeting on Dec. 9.

In the GDP report, consumers continued to do their part to keeping the economy going. They boosted spending in the third quarter at a 6.4 percent rate. That was up from a 3.8 pace in the second quarter, but down slightly from the 6.6 percent rate previously estimated for the third quarter.

Especially encouraging was a 18.4 percent growth rate in business investment in new equipment and software in the third quarter. That was even stronger than the 15.4 percent pace previously estimated for the quarter and up from a 8.3 percent pace in the second quarter.

Spending on residential projects grew at a whopping 22.7 percent pace in the third quarter, also better than the sizable 20.4 percent growth rate first estimated and up from a 6.6 percent pace in the second quarter.

Fewer cuts to business inventories in the third quarter resulted in a 0.16 percentage-point increase to GDP in that three-month period, compared with a 0.67 percentage-point reduction to GDP as previously estimated.

Another factor in the upward revision to GDP in the third quarter: Slightly stronger spending by state and local governments. These governmental bodies boosted spending at a 2.3 percent pace, up from a 1.3 percent growth rate previously estimated.

 


� Copyright 2003 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


(That depends on what the meaning of "may" is... All commentary included on this website is the opinion of tha malcontent and is based in the Truth.  No Liberals, Marxists, Stalinists, Socialists, Communists or DemocRATS were harmed in the making of this website, I promise! -  tha malcontent)

 

Don't do what you're polled to do!� 

 

This web site is designed, maintained and edited by tha malcontent...

 

 "what have you done for Liberty today?"

 

associalisticpress.com� is protected speech pursuant to the First Amendment to the Constitution of the United States and is faithfully enforced by tha malcontent via the Second Amendment to that same Constitution. Any reproduction or redistribution of this article will be seen as an awakening of a Patriot in this Great Republic by tha malcontent, and subsequently applauded! (copyrightwing 2000-2003)

 

associalisticpress.com�

 

an americanfreepress� organization 2000-2003

 

The ap�  & The afp�

 

- the Liberty Project� -

 

'Si vis pacem Para Bellum'

 

Back to the ap  |   The ap archives   |   Contact the ap  |   ap Retractions  |   tha malcontent