U.S. Economy Grows 3.5%; Inflation Gauge Falls Sharply
Jan 31st 2007 | 9:27 am
#1
Guest
Posts: n/a
U.S. Economy Grows 3.5%; Inflation Gauge Falls Sharply
President Bush is sure doing a good job!
The U.S. economy resurged at the end of 2006, overcoming a slump in
housing as consumers, sustained by lower energy prices, ramped up
spending.
Gross domestic product climbed at a seasonally adjusted 3.5% annual
rate October through December, the Commerce Department said Wednesday
in its first of three readings on fourth-quarter GDP. That was up from
2% in the third quarter. A price inflation gauge within the report
posted its biggest drop in 52 years.
ECONOMISTS REACT
The economy "busted out" in the fourth quarter, one economist said,
after the fourth-quarter GDP reading surpassed even raised forecasts.
Read economists' reactions to the report.For the whole year, GDP,
which acts as a scoreboard for the economy by measuring all goods and
services produced, advanced 3.4%, compared to a 3.2% increase in 2005
and 3.9% growth in 2004.
The 3.5% fourth-quarter increase not only defied original expectations
but even surpassed economists' raised forecasts, prompted by some
encouraging data in the past few weeks. The median estimate of 22
economists surveyed Monday by Dow Jones Newswires called for 3.0%
growth.
Economists elevated their forecasts for the economy as the fourth
quarter wore on and data trickled in suggesting surprising strength in
areas such as retail sales and payroll employment.
At the top of the quarter, some analysts had thought GDP would rise
around 1% in the three-month period. Each subsequent morsel of
positive news eroded hopes for an interest-rate cut by the Federal
Reserve. Held back by the housing slump, the economy grew just 2.0% in
the third quarter and when policy makers last met, on Dec. 12,
estimates for the fourth quarter were largely below that rate.
Wrapping up a two-day meeting Wednesday, bankers were expected to
leave their federal-funds rate untouched for a fifth straight session
at 5.25%. The central bank is expected to issue its decision at 2:15
ET.
Tame Inflation Readings
Inflation gauges within the GDP report indicated prices softened
significantly during the fourth quarter. The government's price index
for personal-consumption expenditures actually fell, slipping by 0.8%
after rising 2.4% in the third quarter and 4.0% in the second quarter.
The decrease was the biggest since 1.2% in third-quarter 1954.
The PCE price gauge excluding food and energy rose 2.1%, after
increasing 2.2% in the third quarter. The price index for gross
domestic purchases, which measures prices paid by U.S. residents,
inched 0.1% higher, after going up 2.2% in the third quarter. The
chain-weighted GDP price index increased 1.5%, after rising 1.9% in
the third quarter.
The employment cost index rose by 0.8% in the quarter after a 1.0%
gain in third quarter. Wage and salary payments rose by 0.8%, while
benefits increased at a 1.1% pace. The year-over-year increase for the
reading, which is closely watched by Federal Reserve policy makers,
was 3.3%.
Analysts have said lower energy costs helped the economy in the fourth
quarter, giving consumers more money to spend. Consumer spending
accounts for about 70% of GDP and Wednesday's data showed it surged
4.4% October through December, after increasing 2.8% in the third
quarter. Spending contributed 3.05 percentage points to GDP; it had
contributed 1.96 percentage points in the third quarter.
Purchases of durable goods rose 6.0% in the fourth quarter, after
increasing by 6.4% July through September. Fourth-quarter nondurables
spending rose by 6.9%. Services spending climbed 2.9%.
International trade also gave a push to the economy at the end of last
year, contributing 1.64 percentage points to GDP. U.S. exports rose by
10.0% and imports decreased 3.2%. In the third quarter, trade reduced
GDP by 0.19 percentage point; exports in that period were 6.8% higher
and imports rose by 5.6%.
Despite lower energy prices, fourth-quarter business spending fell
0.4%. Investment in structures went up 2.8% but equipment and software
fell 1.8%. Overall third-quarter outlays by businesses climbed 10.0%.
Residential fixed investment, which includes spending on housing, fell
by 19.2%; that was the sharpest drop since 21.7% in first-quarter 1991
and it reduced overall GDP by 1.16 percentage points. Third-quarter
spending fell 18.7%. Sales of new homes tumbled in 2006, forcing
builders faced with rising inventories to offer incentives in order to
move property.
Another drag on GDP growth was less investment in inventories. Motor
vehicle production declined, following weak sales coupled with high
energy prices. Stockpiles of all goods rose by $35.3 billion.
Companies had boosted stocks $55.4 billion in the third quarter and
$53.7 billion in the second quarter. The deceleration robbed October-
December GDP of 0.71 percentage point.
Real final sales of domestic product, which is GDP less the change in
private inventories, increased at a 4.2% annual rate in the fourth
quarter. Third-quarter sales advanced by 1.9%.
Federal government spending increased 4.5%, after rising in the third
quarter by 1.3%. State and local government outlays rose 3.3%, after
going up by 1.9% in the third quarter.
Construction Spending Fell in December
Separately, the Commerce Department reported Wednesday that U.S.
construction spending fell during December as rising outlays for
commercial projects were offset by the steady plunge of the housing
sector.
Total spending, which had been expected to rise, decreased 0.4% to a
seasonally adjusted annual rate of $1.178 trillion, the Commerce
Department said. Spending rose by 0.1% in November, revised from a
previously reported 0.2% decline.
Residential construction spending decreased by 1.6% to $591.06
billion. Residential spending tumbled a revised 1.4% in November;
originally, November residential outlays were estimated down 1.6%. Non-
residential private construction spending rose by 0.8% in December.
Outlays for factories and schools climbed, while spending dropped on
communication facilities. November spending rose 1.8%, revised from a
previously reported 1.2% advance.
Private-sector construction spending decreased by 0.8% to $896.77
billion in December. November spending declined by 0.5%, revised from
a previously reported 0.6% drop.
In yet another read on the economy, the National Association of
Purchasing Management-Chicago reported Wednesday that its index of
manufacturing activity fell to 48.8 in January from 51.6 the month
before, a sign of economic contraction in one of the nation's largest
industrialized regions.
The number, which came in well below analysts' expectations for a
reading of 52.0, according to a survey of analysts conducted by Dow
Jones Newswires. A reading below 50 in the Chicago index reflects a
contractions in manufacturing activity. The index intially slipped
below 50 in November, though was later revised upward above 50.
Therefore, the January figure represents the first time since April
2003 that the Chicago PMI indicates a contraction.
The U.S. economy resurged at the end of 2006, overcoming a slump in
housing as consumers, sustained by lower energy prices, ramped up
spending.
Gross domestic product climbed at a seasonally adjusted 3.5% annual
rate October through December, the Commerce Department said Wednesday
in its first of three readings on fourth-quarter GDP. That was up from
2% in the third quarter. A price inflation gauge within the report
posted its biggest drop in 52 years.
ECONOMISTS REACT
The economy "busted out" in the fourth quarter, one economist said,
after the fourth-quarter GDP reading surpassed even raised forecasts.
Read economists' reactions to the report.For the whole year, GDP,
which acts as a scoreboard for the economy by measuring all goods and
services produced, advanced 3.4%, compared to a 3.2% increase in 2005
and 3.9% growth in 2004.
The 3.5% fourth-quarter increase not only defied original expectations
but even surpassed economists' raised forecasts, prompted by some
encouraging data in the past few weeks. The median estimate of 22
economists surveyed Monday by Dow Jones Newswires called for 3.0%
growth.
Economists elevated their forecasts for the economy as the fourth
quarter wore on and data trickled in suggesting surprising strength in
areas such as retail sales and payroll employment.
At the top of the quarter, some analysts had thought GDP would rise
around 1% in the three-month period. Each subsequent morsel of
positive news eroded hopes for an interest-rate cut by the Federal
Reserve. Held back by the housing slump, the economy grew just 2.0% in
the third quarter and when policy makers last met, on Dec. 12,
estimates for the fourth quarter were largely below that rate.
Wrapping up a two-day meeting Wednesday, bankers were expected to
leave their federal-funds rate untouched for a fifth straight session
at 5.25%. The central bank is expected to issue its decision at 2:15
ET.
Tame Inflation Readings
Inflation gauges within the GDP report indicated prices softened
significantly during the fourth quarter. The government's price index
for personal-consumption expenditures actually fell, slipping by 0.8%
after rising 2.4% in the third quarter and 4.0% in the second quarter.
The decrease was the biggest since 1.2% in third-quarter 1954.
The PCE price gauge excluding food and energy rose 2.1%, after
increasing 2.2% in the third quarter. The price index for gross
domestic purchases, which measures prices paid by U.S. residents,
inched 0.1% higher, after going up 2.2% in the third quarter. The
chain-weighted GDP price index increased 1.5%, after rising 1.9% in
the third quarter.
The employment cost index rose by 0.8% in the quarter after a 1.0%
gain in third quarter. Wage and salary payments rose by 0.8%, while
benefits increased at a 1.1% pace. The year-over-year increase for the
reading, which is closely watched by Federal Reserve policy makers,
was 3.3%.
Analysts have said lower energy costs helped the economy in the fourth
quarter, giving consumers more money to spend. Consumer spending
accounts for about 70% of GDP and Wednesday's data showed it surged
4.4% October through December, after increasing 2.8% in the third
quarter. Spending contributed 3.05 percentage points to GDP; it had
contributed 1.96 percentage points in the third quarter.
Purchases of durable goods rose 6.0% in the fourth quarter, after
increasing by 6.4% July through September. Fourth-quarter nondurables
spending rose by 6.9%. Services spending climbed 2.9%.
International trade also gave a push to the economy at the end of last
year, contributing 1.64 percentage points to GDP. U.S. exports rose by
10.0% and imports decreased 3.2%. In the third quarter, trade reduced
GDP by 0.19 percentage point; exports in that period were 6.8% higher
and imports rose by 5.6%.
Despite lower energy prices, fourth-quarter business spending fell
0.4%. Investment in structures went up 2.8% but equipment and software
fell 1.8%. Overall third-quarter outlays by businesses climbed 10.0%.
Residential fixed investment, which includes spending on housing, fell
by 19.2%; that was the sharpest drop since 21.7% in first-quarter 1991
and it reduced overall GDP by 1.16 percentage points. Third-quarter
spending fell 18.7%. Sales of new homes tumbled in 2006, forcing
builders faced with rising inventories to offer incentives in order to
move property.
Another drag on GDP growth was less investment in inventories. Motor
vehicle production declined, following weak sales coupled with high
energy prices. Stockpiles of all goods rose by $35.3 billion.
Companies had boosted stocks $55.4 billion in the third quarter and
$53.7 billion in the second quarter. The deceleration robbed October-
December GDP of 0.71 percentage point.
Real final sales of domestic product, which is GDP less the change in
private inventories, increased at a 4.2% annual rate in the fourth
quarter. Third-quarter sales advanced by 1.9%.
Federal government spending increased 4.5%, after rising in the third
quarter by 1.3%. State and local government outlays rose 3.3%, after
going up by 1.9% in the third quarter.
Construction Spending Fell in December
Separately, the Commerce Department reported Wednesday that U.S.
construction spending fell during December as rising outlays for
commercial projects were offset by the steady plunge of the housing
sector.
Total spending, which had been expected to rise, decreased 0.4% to a
seasonally adjusted annual rate of $1.178 trillion, the Commerce
Department said. Spending rose by 0.1% in November, revised from a
previously reported 0.2% decline.
Residential construction spending decreased by 1.6% to $591.06
billion. Residential spending tumbled a revised 1.4% in November;
originally, November residential outlays were estimated down 1.6%. Non-
residential private construction spending rose by 0.8% in December.
Outlays for factories and schools climbed, while spending dropped on
communication facilities. November spending rose 1.8%, revised from a
previously reported 1.2% advance.
Private-sector construction spending decreased by 0.8% to $896.77
billion in December. November spending declined by 0.5%, revised from
a previously reported 0.6% drop.
In yet another read on the economy, the National Association of
Purchasing Management-Chicago reported Wednesday that its index of
manufacturing activity fell to 48.8 in January from 51.6 the month
before, a sign of economic contraction in one of the nation's largest
industrialized regions.
The number, which came in well below analysts' expectations for a
reading of 52.0, according to a survey of analysts conducted by Dow
Jones Newswires. A reading below 50 in the Chicago index reflects a
contractions in manufacturing activity. The index intially slipped
below 50 in November, though was later revised upward above 50.
Therefore, the January figure represents the first time since April
2003 that the Chicago PMI indicates a contraction.
Jan 31st 2007 | 9:36 am
#2
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
"Earl Evleth" <[email protected]> wrote in message
news:[email protected] oups.com...
> President Bush is sure doing a good job!
>
> The U.S. economy resurged at the end of 2006, overcoming a slump in
> housing as consumers, sustained by lower energy prices, ramped up
> spending.
>
> Gross domestic product climbed at a seasonally adjusted 3.5% annual
> rate October through December, the Commerce Department said Wednesday
> in its first of three readings on fourth-quarter GDP. That was up from
> 2% in the third quarter. A price inflation gauge within the report
> posted its biggest drop in 52 years.
>
> ECONOMISTS REACT
>==========================
HOW Dare the BUSH Economy grow so strongly ! It is making it harder for us
Rats to lie about the Bush recession !
news:[email protected] oups.com...
> President Bush is sure doing a good job!
>
> The U.S. economy resurged at the end of 2006, overcoming a slump in
> housing as consumers, sustained by lower energy prices, ramped up
> spending.
>
> Gross domestic product climbed at a seasonally adjusted 3.5% annual
> rate October through December, the Commerce Department said Wednesday
> in its first of three readings on fourth-quarter GDP. That was up from
> 2% in the third quarter. A price inflation gauge within the report
> posted its biggest drop in 52 years.
>
> ECONOMISTS REACT
>==========================
HOW Dare the BUSH Economy grow so strongly ! It is making it harder for us
Rats to lie about the Bush recession !
Jan 31st 2007 | 9:52 am
#3
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
No need to lie. The economy stinks for working Americans.
Sure capitalists and their stooges are doing OK but the rest of America are
perched on the edge of an economic abyss.
No jobs.
No future.
No hope.
--
Joe Steel
True-blue fighter in the War on Error
Reality-based social and political commentary
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
wrote in message news:[email protected] m...
>
> "Earl Evleth" <[email protected]> wrote in message
> news:[email protected] oups.com...
> > President Bush is sure doing a good job!
> >
> > The U.S. economy resurged at the end of 2006, overcoming a slump in
> > housing as consumers, sustained by lower energy prices, ramped up
> > spending.
> >
> > Gross domestic product climbed at a seasonally adjusted 3.5% annual
> > rate October through December, the Commerce Department said Wednesday
> > in its first of three readings on fourth-quarter GDP. That was up from
> > 2% in the third quarter. A price inflation gauge within the report
> > posted its biggest drop in 52 years.
> >
> > ECONOMISTS REACT
> >==========================>
> HOW Dare the BUSH Economy grow so strongly ! It is making it harder for
us
> Rats to lie about the Bush recession !
>
>
Sure capitalists and their stooges are doing OK but the rest of America are
perched on the edge of an economic abyss.
No jobs.
No future.
No hope.
--
Joe Steel
True-blue fighter in the War on Error
Reality-based social and political commentary
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
wrote in message news:[email protected] m...
>
> "Earl Evleth" <[email protected]> wrote in message
> news:[email protected] oups.com...
> > President Bush is sure doing a good job!
> >
> > The U.S. economy resurged at the end of 2006, overcoming a slump in
> > housing as consumers, sustained by lower energy prices, ramped up
> > spending.
> >
> > Gross domestic product climbed at a seasonally adjusted 3.5% annual
> > rate October through December, the Commerce Department said Wednesday
> > in its first of three readings on fourth-quarter GDP. That was up from
> > 2% in the third quarter. A price inflation gauge within the report
> > posted its biggest drop in 52 years.
> >
> > ECONOMISTS REACT
> >==========================>
> HOW Dare the BUSH Economy grow so strongly ! It is making it harder for
us
> Rats to lie about the Bush recession !
>
>
Jan 31st 2007 | 9:58 am
#4
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
"Joe Steel" <[email protected]> wrote in message
news:[email protected]...
> No need to lie. The economy stinks for working Americans.
> ===========
How would a lazy welfare democrat leech like you know anythig about working
americans?
news:[email protected]...
> No need to lie. The economy stinks for working Americans.
> ===========
How would a lazy welfare democrat leech like you know anythig about working
americans?
Jan 31st 2007 | 10:11 am
#5
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
wrote in message news:[email protected] m...
>
> "Joe Steel" <[email protected]> wrote in message
> news:[email protected]...
>> No need to lie. The economy stinks for working Americans.
>> ===========>
> How would a lazy welfare democrat leech like you know anythig about
> working americans?
What do you do for a living? I could swear you're in the newsgroups 24/7.
Does your mommy and daddy let you live in their basement for free?
>
>
<http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
wrote in message news:[email protected] m...
>
> "Joe Steel" <[email protected]> wrote in message
> news:[email protected]...
>> No need to lie. The economy stinks for working Americans.
>> ===========>
> How would a lazy welfare democrat leech like you know anythig about
> working americans?
What do you do for a living? I could swear you're in the newsgroups 24/7.
Does your mommy and daddy let you live in their basement for free?
>
>
Jan 31st 2007 | 11:17 am
#6
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
"RealityCheck" <[email protected]> wrote in message
news:[email protected].. .
>
> "Democrat John Edwards 28,000 Sq Ft home"
> <http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
> wrote in message
> news:[email protected] m...
>>
>> "Joe Steel" <[email protected]> wrote in message
>> news:[email protected]...
>>> No need to lie. The economy stinks for working Americans.
>>> ===========>>
>> How would a lazy welfare democrat leech like you know anythig about
>> working americans?
>
> What do you do for a living? I could swear you're in the newsgroups
> 24/7. Does your mommy and daddy let you live in their basement for
> free?
Richee the Retard is a buggy wrangler down at the Wal-Mart. They have
cut his hours back because he scares the living shit out of small
children and old ladies, but they haven't outright fired him out of
sympathy.
news:[email protected].. .
>
> "Democrat John Edwards 28,000 Sq Ft home"
> <http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
> wrote in message
> news:[email protected] m...
>>
>> "Joe Steel" <[email protected]> wrote in message
>> news:[email protected]...
>>> No need to lie. The economy stinks for working Americans.
>>> ===========>>
>> How would a lazy welfare democrat leech like you know anythig about
>> working americans?
>
> What do you do for a living? I could swear you're in the newsgroups
> 24/7. Does your mommy and daddy let you live in their basement for
> free?
Richee the Retard is a buggy wrangler down at the Wal-Mart. They have
cut his hours back because he scares the living shit out of small
children and old ladies, but they haven't outright fired him out of
sympathy.
Jan 31st 2007 | 12:30 pm
#7
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Inflation Gauge Falls Sharply
He's good at making shit up! Foreclosures at highest levels yet, but
businesses are doing GREAT....
and why? Highest profits due to moving everything over seas. Funny how they
don't include Utilities/Gasoline/Food costs.
Consu,er Confidence LOW and a poor Christmas proves the economy SUCKS!
The picture is sorta like the War in Iraq..... WE'RE
WINNING..............until you look really close at the fine print.
that your not!
You ready to pay your bills, China seems to want some cash?
"Earl Evleth" <[email protected]> wrote in message
news:[email protected] oups.com...
> President Bush is sure doing a good job!
>
> The U.S. economy resurged at the end of 2006, overcoming a slump in
> housing as consumers, sustained by lower energy prices, ramped up
> spending.
>
> Gross domestic product climbed at a seasonally adjusted 3.5% annual
> rate October through December, the Commerce Department said Wednesday
> in its first of three readings on fourth-quarter GDP. That was up from
> 2% in the third quarter. A price inflation gauge within the report
> posted its biggest drop in 52 years.
>
> ECONOMISTS REACT
>
>
>
> The economy "busted out" in the fourth quarter, one economist said,
> after the fourth-quarter GDP reading surpassed even raised forecasts.
> Read economists' reactions to the report.For the whole year, GDP,
> which acts as a scoreboard for the economy by measuring all goods and
> services produced, advanced 3.4%, compared to a 3.2% increase in 2005
> and 3.9% growth in 2004.
>
> The 3.5% fourth-quarter increase not only defied original expectations
> but even surpassed economists' raised forecasts, prompted by some
> encouraging data in the past few weeks. The median estimate of 22
> economists surveyed Monday by Dow Jones Newswires called for 3.0%
> growth.
>
> Economists elevated their forecasts for the economy as the fourth
> quarter wore on and data trickled in suggesting surprising strength in
> areas such as retail sales and payroll employment.
>
> At the top of the quarter, some analysts had thought GDP would rise
> around 1% in the three-month period. Each subsequent morsel of
> positive news eroded hopes for an interest-rate cut by the Federal
> Reserve. Held back by the housing slump, the economy grew just 2.0% in
> the third quarter and when policy makers last met, on Dec. 12,
> estimates for the fourth quarter were largely below that rate.
> Wrapping up a two-day meeting Wednesday, bankers were expected to
> leave their federal-funds rate untouched for a fifth straight session
> at 5.25%. The central bank is expected to issue its decision at 2:15
> ET.
>
> Tame Inflation Readings
>
> Inflation gauges within the GDP report indicated prices softened
> significantly during the fourth quarter. The government's price index
> for personal-consumption expenditures actually fell, slipping by 0.8%
> after rising 2.4% in the third quarter and 4.0% in the second quarter.
> The decrease was the biggest since 1.2% in third-quarter 1954.
>
> The PCE price gauge excluding food and energy rose 2.1%, after
> increasing 2.2% in the third quarter. The price index for gross
> domestic purchases, which measures prices paid by U.S. residents,
> inched 0.1% higher, after going up 2.2% in the third quarter. The
> chain-weighted GDP price index increased 1.5%, after rising 1.9% in
> the third quarter.
>
>
> The employment cost index rose by 0.8% in the quarter after a 1.0%
> gain in third quarter. Wage and salary payments rose by 0.8%, while
> benefits increased at a 1.1% pace. The year-over-year increase for the
> reading, which is closely watched by Federal Reserve policy makers,
> was 3.3%.
>
> Analysts have said lower energy costs helped the economy in the fourth
> quarter, giving consumers more money to spend. Consumer spending
> accounts for about 70% of GDP and Wednesday's data showed it surged
> 4.4% October through December, after increasing 2.8% in the third
> quarter. Spending contributed 3.05 percentage points to GDP; it had
> contributed 1.96 percentage points in the third quarter.
>
> Purchases of durable goods rose 6.0% in the fourth quarter, after
> increasing by 6.4% July through September. Fourth-quarter nondurables
> spending rose by 6.9%. Services spending climbed 2.9%.
>
> International trade also gave a push to the economy at the end of last
> year, contributing 1.64 percentage points to GDP. U.S. exports rose by
> 10.0% and imports decreased 3.2%. In the third quarter, trade reduced
> GDP by 0.19 percentage point; exports in that period were 6.8% higher
> and imports rose by 5.6%.
>
> Despite lower energy prices, fourth-quarter business spending fell
> 0.4%. Investment in structures went up 2.8% but equipment and software
> fell 1.8%. Overall third-quarter outlays by businesses climbed 10.0%.
>
> Residential fixed investment, which includes spending on housing, fell
> by 19.2%; that was the sharpest drop since 21.7% in first-quarter 1991
> and it reduced overall GDP by 1.16 percentage points. Third-quarter
> spending fell 18.7%. Sales of new homes tumbled in 2006, forcing
> builders faced with rising inventories to offer incentives in order to
> move property.
>
> Another drag on GDP growth was less investment in inventories. Motor
> vehicle production declined, following weak sales coupled with high
> energy prices. Stockpiles of all goods rose by $35.3 billion.
> Companies had boosted stocks $55.4 billion in the third quarter and
> $53.7 billion in the second quarter. The deceleration robbed October-
> December GDP of 0.71 percentage point.
>
> Real final sales of domestic product, which is GDP less the change in
> private inventories, increased at a 4.2% annual rate in the fourth
> quarter. Third-quarter sales advanced by 1.9%.
>
> Federal government spending increased 4.5%, after rising in the third
> quarter by 1.3%. State and local government outlays rose 3.3%, after
> going up by 1.9% in the third quarter.
>
> Construction Spending Fell in December
>
> Separately, the Commerce Department reported Wednesday that U.S.
> construction spending fell during December as rising outlays for
> commercial projects were offset by the steady plunge of the housing
> sector.
>
> Total spending, which had been expected to rise, decreased 0.4% to a
> seasonally adjusted annual rate of $1.178 trillion, the Commerce
> Department said. Spending rose by 0.1% in November, revised from a
> previously reported 0.2% decline.
>
> Residential construction spending decreased by 1.6% to $591.06
> billion. Residential spending tumbled a revised 1.4% in November;
> originally, November residential outlays were estimated down 1.6%. Non-
> residential private construction spending rose by 0.8% in December.
> Outlays for factories and schools climbed, while spending dropped on
> communication facilities. November spending rose 1.8%, revised from a
> previously reported 1.2% advance.
>
> Private-sector construction spending decreased by 0.8% to $896.77
> billion in December. November spending declined by 0.5%, revised from
> a previously reported 0.6% drop.
>
> In yet another read on the economy, the National Association of
> Purchasing Management-Chicago reported Wednesday that its index of
> manufacturing activity fell to 48.8 in January from 51.6 the month
> before, a sign of economic contraction in one of the nation's largest
> industrialized regions.
>
> The number, which came in well below analysts' expectations for a
> reading of 52.0, according to a survey of analysts conducted by Dow
> Jones Newswires. A reading below 50 in the Chicago index reflects a
> contractions in manufacturing activity. The index intially slipped
> below 50 in November, though was later revised upward above 50.
> Therefore, the January figure represents the first time since April
> 2003 that the Chicago PMI indicates a contraction.
>
businesses are doing GREAT....
and why? Highest profits due to moving everything over seas. Funny how they
don't include Utilities/Gasoline/Food costs.
Consu,er Confidence LOW and a poor Christmas proves the economy SUCKS!
The picture is sorta like the War in Iraq..... WE'RE
WINNING..............until you look really close at the fine print.
that your not!
You ready to pay your bills, China seems to want some cash?
"Earl Evleth" <[email protected]> wrote in message
news:[email protected] oups.com...
> President Bush is sure doing a good job!
>
> The U.S. economy resurged at the end of 2006, overcoming a slump in
> housing as consumers, sustained by lower energy prices, ramped up
> spending.
>
> Gross domestic product climbed at a seasonally adjusted 3.5% annual
> rate October through December, the Commerce Department said Wednesday
> in its first of three readings on fourth-quarter GDP. That was up from
> 2% in the third quarter. A price inflation gauge within the report
> posted its biggest drop in 52 years.
>
> ECONOMISTS REACT
>
>
>
> The economy "busted out" in the fourth quarter, one economist said,
> after the fourth-quarter GDP reading surpassed even raised forecasts.
> Read economists' reactions to the report.For the whole year, GDP,
> which acts as a scoreboard for the economy by measuring all goods and
> services produced, advanced 3.4%, compared to a 3.2% increase in 2005
> and 3.9% growth in 2004.
>
> The 3.5% fourth-quarter increase not only defied original expectations
> but even surpassed economists' raised forecasts, prompted by some
> encouraging data in the past few weeks. The median estimate of 22
> economists surveyed Monday by Dow Jones Newswires called for 3.0%
> growth.
>
> Economists elevated their forecasts for the economy as the fourth
> quarter wore on and data trickled in suggesting surprising strength in
> areas such as retail sales and payroll employment.
>
> At the top of the quarter, some analysts had thought GDP would rise
> around 1% in the three-month period. Each subsequent morsel of
> positive news eroded hopes for an interest-rate cut by the Federal
> Reserve. Held back by the housing slump, the economy grew just 2.0% in
> the third quarter and when policy makers last met, on Dec. 12,
> estimates for the fourth quarter were largely below that rate.
> Wrapping up a two-day meeting Wednesday, bankers were expected to
> leave their federal-funds rate untouched for a fifth straight session
> at 5.25%. The central bank is expected to issue its decision at 2:15
> ET.
>
> Tame Inflation Readings
>
> Inflation gauges within the GDP report indicated prices softened
> significantly during the fourth quarter. The government's price index
> for personal-consumption expenditures actually fell, slipping by 0.8%
> after rising 2.4% in the third quarter and 4.0% in the second quarter.
> The decrease was the biggest since 1.2% in third-quarter 1954.
>
> The PCE price gauge excluding food and energy rose 2.1%, after
> increasing 2.2% in the third quarter. The price index for gross
> domestic purchases, which measures prices paid by U.S. residents,
> inched 0.1% higher, after going up 2.2% in the third quarter. The
> chain-weighted GDP price index increased 1.5%, after rising 1.9% in
> the third quarter.
>
>
> The employment cost index rose by 0.8% in the quarter after a 1.0%
> gain in third quarter. Wage and salary payments rose by 0.8%, while
> benefits increased at a 1.1% pace. The year-over-year increase for the
> reading, which is closely watched by Federal Reserve policy makers,
> was 3.3%.
>
> Analysts have said lower energy costs helped the economy in the fourth
> quarter, giving consumers more money to spend. Consumer spending
> accounts for about 70% of GDP and Wednesday's data showed it surged
> 4.4% October through December, after increasing 2.8% in the third
> quarter. Spending contributed 3.05 percentage points to GDP; it had
> contributed 1.96 percentage points in the third quarter.
>
> Purchases of durable goods rose 6.0% in the fourth quarter, after
> increasing by 6.4% July through September. Fourth-quarter nondurables
> spending rose by 6.9%. Services spending climbed 2.9%.
>
> International trade also gave a push to the economy at the end of last
> year, contributing 1.64 percentage points to GDP. U.S. exports rose by
> 10.0% and imports decreased 3.2%. In the third quarter, trade reduced
> GDP by 0.19 percentage point; exports in that period were 6.8% higher
> and imports rose by 5.6%.
>
> Despite lower energy prices, fourth-quarter business spending fell
> 0.4%. Investment in structures went up 2.8% but equipment and software
> fell 1.8%. Overall third-quarter outlays by businesses climbed 10.0%.
>
> Residential fixed investment, which includes spending on housing, fell
> by 19.2%; that was the sharpest drop since 21.7% in first-quarter 1991
> and it reduced overall GDP by 1.16 percentage points. Third-quarter
> spending fell 18.7%. Sales of new homes tumbled in 2006, forcing
> builders faced with rising inventories to offer incentives in order to
> move property.
>
> Another drag on GDP growth was less investment in inventories. Motor
> vehicle production declined, following weak sales coupled with high
> energy prices. Stockpiles of all goods rose by $35.3 billion.
> Companies had boosted stocks $55.4 billion in the third quarter and
> $53.7 billion in the second quarter. The deceleration robbed October-
> December GDP of 0.71 percentage point.
>
> Real final sales of domestic product, which is GDP less the change in
> private inventories, increased at a 4.2% annual rate in the fourth
> quarter. Third-quarter sales advanced by 1.9%.
>
> Federal government spending increased 4.5%, after rising in the third
> quarter by 1.3%. State and local government outlays rose 3.3%, after
> going up by 1.9% in the third quarter.
>
> Construction Spending Fell in December
>
> Separately, the Commerce Department reported Wednesday that U.S.
> construction spending fell during December as rising outlays for
> commercial projects were offset by the steady plunge of the housing
> sector.
>
> Total spending, which had been expected to rise, decreased 0.4% to a
> seasonally adjusted annual rate of $1.178 trillion, the Commerce
> Department said. Spending rose by 0.1% in November, revised from a
> previously reported 0.2% decline.
>
> Residential construction spending decreased by 1.6% to $591.06
> billion. Residential spending tumbled a revised 1.4% in November;
> originally, November residential outlays were estimated down 1.6%. Non-
> residential private construction spending rose by 0.8% in December.
> Outlays for factories and schools climbed, while spending dropped on
> communication facilities. November spending rose 1.8%, revised from a
> previously reported 1.2% advance.
>
> Private-sector construction spending decreased by 0.8% to $896.77
> billion in December. November spending declined by 0.5%, revised from
> a previously reported 0.6% drop.
>
> In yet another read on the economy, the National Association of
> Purchasing Management-Chicago reported Wednesday that its index of
> manufacturing activity fell to 48.8 in January from 51.6 the month
> before, a sign of economic contraction in one of the nation's largest
> industrialized regions.
>
> The number, which came in well below analysts' expectations for a
> reading of 52.0, according to a survey of analysts conducted by Dow
> Jones Newswires. A reading below 50 in the Chicago index reflects a
> contractions in manufacturing activity. The index intially slipped
> below 50 in November, though was later revised upward above 50.
> Therefore, the January figure represents the first time since April
> 2003 that the Chicago PMI indicates a contraction.
>
Jan 31st 2007 | 12:33 pm
#8
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
sustained by lower energy prices? sustained by lower energy prices? Gee how
come so many Americans are in foreclosure?
See kids BUSINESS can do better, WHILE AMERICAN WORKERS don't.
and Saddam has a Newkeylure bomb!
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
wrote in message news:[email protected] m...
>
> "Earl Evleth" <[email protected]> wrote in message
> news:[email protected] oups.com...
>> President Bush is sure doing a good job!
>>
>> The U.S. economy resurged at the end of 2006, overcoming a slump in
>> housing as consumers, sustained by lower energy prices, ramped up
>> spending.
>>
>> Gross domestic product climbed at a seasonally adjusted 3.5% annual
>> rate October through December, the Commerce Department said Wednesday
>> in its first of three readings on fourth-quarter GDP. That was up from
>> 2% in the third quarter. A price inflation gauge within the report
>> posted its biggest drop in 52 years.
>>
>> ECONOMISTS REACT
>>==========================>
> HOW Dare the BUSH Economy grow so strongly ! It is making it harder for
> us Rats to lie about the Bush recession !
>
come so many Americans are in foreclosure?
See kids BUSINESS can do better, WHILE AMERICAN WORKERS don't.
and Saddam has a Newkeylure bomb!
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
wrote in message news:[email protected] m...
>
> "Earl Evleth" <[email protected]> wrote in message
> news:[email protected] oups.com...
>> President Bush is sure doing a good job!
>>
>> The U.S. economy resurged at the end of 2006, overcoming a slump in
>> housing as consumers, sustained by lower energy prices, ramped up
>> spending.
>>
>> Gross domestic product climbed at a seasonally adjusted 3.5% annual
>> rate October through December, the Commerce Department said Wednesday
>> in its first of three readings on fourth-quarter GDP. That was up from
>> 2% in the third quarter. A price inflation gauge within the report
>> posted its biggest drop in 52 years.
>>
>> ECONOMISTS REACT
>>==========================>
> HOW Dare the BUSH Economy grow so strongly ! It is making it harder for
> us Rats to lie about the Bush recession !
>
Jan 31st 2007 | 12:54 pm
#9
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
In article <[email protected]>
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives
/display_exclusive.html?id848> wrote:
>
>
> "Earl Evleth" <[email protected]> wrote in message
> news:[email protected] oups.com...
> > President Bush is sure doing a good job!
> >
> > The U.S. economy resurged at the end of 2006, overcoming a
slump in
> > housing as consumers, sustained by lower energy prices,
ramped up
> > spending.
> >
> > Gross domestic product climbed at a seasonally adjusted 3.5%
annual
> > rate October through December, the Commerce Department said
Wednesday
> > in its first of three readings on fourth-quarter GDP. That
was up from
> > 2% in the third quarter. A price inflation gauge within the
report
> > posted its biggest drop in 52 years.
> >
> > ECONOMISTS REACT
> >==========================>
> HOW Dare the BUSH Economy grow so strongly ! It is making it
harder for us
> Rats to lie about the Bush recession !
Why would liberals be outraged?
That's one of the main reasons we booted the Republicans out of
the Congress!
Now that Bush no longer has anything to say about the economy,
you'd EXPECT it to improve!
"Democrat John Edwards 28,000 Sq Ft home"
<http://www.carolinajournal.com/exclusives
/display_exclusive.html?id848> wrote:
>
>
> "Earl Evleth" <[email protected]> wrote in message
> news:[email protected] oups.com...
> > President Bush is sure doing a good job!
> >
> > The U.S. economy resurged at the end of 2006, overcoming a
slump in
> > housing as consumers, sustained by lower energy prices,
ramped up
> > spending.
> >
> > Gross domestic product climbed at a seasonally adjusted 3.5%
annual
> > rate October through December, the Commerce Department said
Wednesday
> > in its first of three readings on fourth-quarter GDP. That
was up from
> > 2% in the third quarter. A price inflation gauge within the
report
> > posted its biggest drop in 52 years.
> >
> > ECONOMISTS REACT
> >==========================>
> HOW Dare the BUSH Economy grow so strongly ! It is making it
harder for us
> Rats to lie about the Bush recession !
Why would liberals be outraged?
That's one of the main reasons we booted the Republicans out of
the Congress!
Now that Bush no longer has anything to say about the economy,
you'd EXPECT it to improve!
Jan 31st 2007 | 2:25 pm
#10
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
That's the problem with Internet access all the lonely malformed disfigured
mentally dysfunctionals can get on line and pretend to be hero's. Ya gotta
feel sorry for the guy. Having a Father who married his own sister, the
offspring is usually in pretty bad shape, but it looks like he may have a
couple of fingers on his flipper like arms......
So Democrat John Edwards wannabe make us laugh wiggle your flipper
"Nebuchadnezzar II" <[email protected]> wrote in message
news:Nkawh.4818$lk3.2609@trnddc04...
> "RealityCheck" <[email protected]> wrote in message
> news:[email protected].. .
>>
>> "Democrat John Edwards 28,000 Sq Ft home"
>> <http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
>> wrote in message news:[email protected] m...
>>>
>>> "Joe Steel" <[email protected]> wrote in message
>>> news:[email protected]...
>>>> No need to lie. The economy stinks for working Americans.
>>>> ===========>>>
>>> How would a lazy welfare democrat leech like you know anythig about
>>> working americans?
>>
>> What do you do for a living? I could swear you're in the newsgroups 24/7.
>> Does your mommy and daddy let you live in their basement for free?
>
> Richee the Retard is a buggy wrangler down at the Wal-Mart. They have cut
> his hours back because he scares the living shit out of small children and
> old ladies, but they haven't outright fired him out of sympathy.
>
mentally dysfunctionals can get on line and pretend to be hero's. Ya gotta
feel sorry for the guy. Having a Father who married his own sister, the
offspring is usually in pretty bad shape, but it looks like he may have a
couple of fingers on his flipper like arms......
So Democrat John Edwards wannabe make us laugh wiggle your flipper
"Nebuchadnezzar II" <[email protected]> wrote in message
news:Nkawh.4818$lk3.2609@trnddc04...
> "RealityCheck" <[email protected]> wrote in message
> news:[email protected].. .
>>
>> "Democrat John Edwards 28,000 Sq Ft home"
>> <http://www.carolinajournal.com/exclusives/display_exclusive.html?id848>
>> wrote in message news:[email protected] m...
>>>
>>> "Joe Steel" <[email protected]> wrote in message
>>> news:[email protected]...
>>>> No need to lie. The economy stinks for working Americans.
>>>> ===========>>>
>>> How would a lazy welfare democrat leech like you know anythig about
>>> working americans?
>>
>> What do you do for a living? I could swear you're in the newsgroups 24/7.
>> Does your mommy and daddy let you live in their basement for free?
>
> Richee the Retard is a buggy wrangler down at the Wal-Mart. They have cut
> his hours back because he scares the living shit out of small children and
> old ladies, but they haven't outright fired him out of sympathy.
>
Feb 6th 2007 | 3:02 pm
#11
Guest
Posts: n/a
Re: U.S. Economy Grows 3.5%; Liberals ARe Outraged !
On Wed, 31 Jan 2007 16:52:47 -0600, "Joe Steel"
<[email protected]> wrote:
>No need to lie. The economy stinks for working Americans.
>
>Sure capitalists and their stooges are doing OK but the rest of America are
>perched on the edge of an economic abyss.
>
>No jobs.
>
>No future.
>
>No hope.
How about you getting a job and quit being a welfare bitch?
<[email protected]> wrote:
>No need to lie. The economy stinks for working Americans.
>
>Sure capitalists and their stooges are doing OK but the rest of America are
>perched on the edge of an economic abyss.
>
>No jobs.
>
>No future.
>
>No hope.
How about you getting a job and quit being a welfare bitch?
