Economy Sizzles At 3.9% Pace

ghengis was surprised to see MSNBC giving this big play with a home-page banner headline. They've corrected their error by now, though. Not on the home page, not on the US News page, just on the business page, because of course this news is only of interest to corporate types and day traders, right?

The economy picked up speed in the summer, growing at a brisk 3.9 percent pace, the fastest in 1½ years and an impressive performance even as a credit crunch plunged the housing market deeper into turmoil.

The latest snapshot of the country’s economic health, released by the Commerce Department on Wednesday, suggested that the economy is demonstrating much resilience and thus far holding up well to the strains in the housing and credit markets, which had intensified during the third quarter and rocked Wall Street.

A second report from the department showed construction spending rose 0.3 percent in September, the best showing in four months. All-time high spending in both commercial construction by private builders and government projects more than offset weakness in home building.

...

The third quarter’s growth rate was up slightly from a 3.8 percent pace logged in the second quarter. It marked the strongest showing since the first quarter of last year.

The increase in gross domestic product exceeded analysts’ forecasts for a 3.1 percent growth rate for third quarter. Gross domestic product is the value of all goods and services produced within the United States and is considered the best barometer of the country’s economic fitness.

The White House seized the news, scheduling a briefing for reporters with Commerce Secretary Carlos Gutierrez and Ed Lazear, the chairman of Bush’s Council of Economic Advisers. Lazear said he was particularly pleased to see that the growth was balanced across sectors and that a worsening housing slump did not appear to leak into other areas of the economy as feared.

“This is an extremely resilient economy,” [the chair of Bush's Council of Economic Advisors] said. “It is really quite remarkable.”

Back to back quarters of 3.8% and 3.9% GDP growth, after five years of steady growth. Obviously, we're in a recession... if some people "feel" like we are.

Jennifer Connelly Cowbell? I think it's warranted.

That's from Career Opportunities. See what I did there?

Had nothing to do with the sinuous, rhythmic grinding on the horse. Nothing at all.

posted by Ace at 12:42 PM

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