Economic Growth Higher than Anticipated by Commerce Dept
COMMERCE DEPARTMENT REPORTS
These numbers out of Washington D.C. are of interest and confirm our observations of business activity around the nation. Global Perspectives (http://www.bootheglobalperspectives.com) maintains a list of 4,800+ VIP's and executives, and our interviews and observations have shown steady up-trends across the USA. Note the economic statistics below, just released.
The nation’s economy continued to expand in the third quarter, rising at an annualized rate of 2 percent, the Commerce Department just announced today.
The Gross Domestic Product numbers are preliminary and will be adjusted but economists had expected a rate of 1.8 percent for the period. GDP rose at a 1.3 percent rate in the second quarter. An increase to 2 percent is considered very positive, in light of the USA's ability to absorb thousands of "soldiers home from the war" who returned when the Iraq war was ended.
After 43 straight months of improving employment, the unemployment rate dropped to 7.8 percent last month. Unemployment claims were significantly down, as reported in another study yesterday. Small business is growing, and community banks are lending more for business purposes.
Signs for the economy are positive, when all factors are considered.
* Housing is recovering, with new home sales up 27 percent last month from a year earlier and existing home sales at their best rate since the 2008.
* Businesses are expressing concerns about the debt crisis in Europe, but this is also bringing more investors of the US Dollar and more Europeans trust the dollar as a secure investment.
* Budget negotiations, forced upon Congress by the Tea Party, will come into play again in January, and this is likely to generate political drama, but the automatic budget cuts are unlikely to occur, because they impact defense pending, wealthy taxpayers, as well as social services, and most observers agree that a different solution will be forthcoming.
Therefore, note as of today, October 26, 2012, these are the economic facts:
* Unemployment rate declining
* Unemployment claims declining
* Housing improving
* U.S. Economic growth expanding above projections
* Relative economic strength of the USA to other nations is good