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| 5/24 |
| 2006/10/27-30 [Politics/Domestic/California, Politics/Domestic/President/Bush] UID:45012 Activity:nil |
10/27 http://money.cnn.com/2006/10/27/news/economy/gdp/index.htm There you go, Q3 GDP estimated at 1.6%. Looks like the markets had not factored this in. \_ http://www.freerepublic.com/focus/f-news/1727125/posts |
| 5/24 |
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| money.cnn.com/2006/10/27/news/economy/gdp/index.htm com) -- Economic growth slowed to the weakest pace in more than three years in the third quarter, as the government's main gauge of the strength of the US economy came in much lower than analysts had forecast. Gross domestic product (GDP), the broadest measure of the nation's economy, grew at a 16 percent annual rate in the quarter, the Commerce Department said, down from the 26 percent rate in the second quarter. gif Quick Vote What was the top business news story of the past week? Top 10 cities: Where to buy now While the slower than expected economic growth isn't a positive, some economists argued the economy appears poised to bounce back in the current quarter, helped by lower energy prices. Moreover, the slower growth, and a price reading in the report that showed less inflation pressures than expected, raised hopes that the Federal Reserve could start to cut interest rates early next year, as the central bank tries to find the balance between economic growth and price stability. Weaker growth in the quarter was attributable in part to a rising trade gap, which subtracts from GDP, as well as a slump in the nation's housing market. Consumer spending also came in a bit weaker than expected. While the war in Iraq has held much of the focus of the election debate, and other key parts of the economy, notably the stock market and employment, are still relatively strong, the Democrats were quick to seize on the GDP report as a further sign of problems in administration policy. "Once again, the Bush economy is going in the wrong direction," said a statement from Rep. Carolyn Maloney, D-NY, the senior House Democrat on the Joint Economic Committee. "An economic recovery that never benefited working Americans in the first place now has slowed to a crawl." More than two hours after the release of the GDP report, the press offices for the White House, the Commerce Department and the Treasury Department said that they had no statement on the report. Treasury bond prices rose on the news, trimming the yield on the 10-year note to 469 percent, as investors bet that inflation is in check. The report's closely watched inflation reading, the so-called core PCE deflator that measures of prices paid by consumers for goods other than food and energy, climbed at a 23 percent rate in the quarter, down from 27 percent in the second quarter. Some economists had been looking for a 25 percent rate, and the 23 percent rate is closer to the 20 level that is widely considered to be in the Fed's comfort zone. The Fed has cited the slowing economy as it has held rates steady at its past three meetings, following 17 straight rate hikes over the previous two years. "This is a market-friendly number," said Anthony Chan, chief economist for JPMorgan Private Client Services. "It certainly extinguishes much of the chatter going on from some Fed officials about a rate hike or an indefinite pause." The housing market in particular has cut into economic growth. Investment in residential real estate tumbled 17 percent in the quarter after sinking at an 11 percent rate in the prior quarter. That contrasts to 7 percent growth in housing investment in the third quarter of 2005 and a 20 percent jump in the second quarter as the homebuilding boom shifted into high gear. But recently homebuilders have cut back on construction because of a glut of homes on the market. Charts) the company cut output at US factories in the quarter. But there had been expectations of stronger consumer spending, helped by falling energy prices. The report showed consumer spending rose at a 31 percent rate in the quarter. While that's up from the 26 percent rate in the second quarter, it was less than the 35 percent forecast by some economists. |
| www.freerepublic.com/focus/f-news/1727125/posts com) -- Economic growth slowed to the weakest pace in more than three years in the third quarter, as the government's main gauge of the strength of the US economy came in much lower than analysts had forecast. Gross domestic product (GDP), the broadest measure of the nation's economy, grew at a 16 percent annual rate in the quarter, the Commerce Department said, down from the 26 percent rate in the second quarter. Moreover, the slower growth, and a price reading in the report that showed less inflation pressures than expected, raised hopes that the Federal Reserve could start to cut interest rates early next year, as the central bank tries to find the balance between economic growth and price stability. Weaker growth in the quarter was attributable in part to a rising trade gap, which subtracts from GDP, as well as a slump in the nation's housing market. Consumer spending also came in a bit weaker than expected. The news was not well timed for the Bush administration as Republicans try to hold onto Congress as polls show the Democrats poised to make gains. While the war in Iraq has held much of the focus of the election debate, and other key parts of the economy, notably the stock market and employment, are still relatively strong, the Democrats were quick to seize on the GDP report as a further sign of problems in administration policy. "Once again, the Bush economy is going in the wrong direction," said a statement from Rep. Carolyn Maloney, D-NY, the senior House Democrat on the Joint Economic Committee. "An economic recovery that never benefited working Americans in the first place now has slowed to a crawl." In the past few days, I've seen quite a few news stories about how moribund the US economy is right now. Yet, when I look at all the numbers, it sure looks like we're doing very, very well. How extremely odd for this sort of story to be in news right now. View Replies To: Mikey_1962 Well, it beats their lying that it's the worst economy since Herbert Hoover. Apparently forgetting the Carter years with double digit unemployment, gas lines, and 21% interest rates. View Replies To: Mikey_1962 CNN's irrational apathy is most unprofessional. I cannot believe they included that partisan quote a "news" story about the economy -- as if that has anything whatsoever to do with GDP. View Replies To: Mikey_1962 That must be in anticipation of the wonderful Democrat plan to raise taxes after Nov. If this economy is going to stall, (according to CNN/DNC talking points), then, if Democrats win, it will be shifted into reverse.... View Replies To: traditional1 If the Democrats win, they will raise our taxes because Bush ruined the economy and we will just have to suffer for Bush's terrible administration. Whenever the Democrats win anything, we will all have to be punished for the evil Bush administration, even if it doesn't happen for a decade. Hillary told us:"We will take things away from you for the common good." View Replies To: Mikey_1962 I just read on Marketwatch that today stocks were "Stung by GDP Report"! I guess there's no such thing as profit taking anymore, especially when the markets have been running almost straight uphill for the last few months! I'm not even a financial analyst, but smart enough not to write STUPID stuff like that! View Replies Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works. |