Thursday, November 29, 2007

Grim News: Economy Grows at 4.9%

Despite all the gloom and doom in the mainstream media, the economy is still moving forward.

GDP revised up to 4.9% for third quarter
WASHINGTON (MarketWatch) - The U.S. economy expanded at the fastest pace in four years in the third quarter, growing at an real annual rate of 4.9%, the Commerce Department said Thursday in its second estimate of last quarter's growth.

The upward revision to gross domestic product was due to larger inventory building and a better trade balance. It was in line with Wall Street expectations.
A month ago, the government pegged third-quarter GDP at 3.9%. The government publishes three estimates of GDP, adding more complete information with each passing month.

Real GDP has increased 2.8% in the past year, close to the economy's long-run potential.
So let's review.

Unemployment is less than 5% and approaching the "natural rate of unemployment" while GDP has grown this year by 2.8% (anything over 2% is really good). So, while the housing industry is in trouble and there are individual regions that are seeing a significant slowdown, on a macroeconomic level, things are still going pretty well.

Of course, you will only hear this said by the MSM if and when a Democrat gets into the White House.

More at NewsBusters.