"Economy expands vigorously: inflation fears ease"
According to a Commerce Department report released on Friday, October 28, 2005:
Economic activity expanded at an energetic 3.8 percent annual rate in the third quarter, providing vivid evidence of the economy's stamina even as it coped with the destructive forces of hurricanes Katrina and Rita.
The latest snapshot of the country's economic performance, released by the Commerce Department on Friday, marked an improvement from the solid 3.3 percent pace of growth registered in the second quarter.
...The expansion in gross domestic product in the July—to—September quarter, the strongest since the beginning of the year, exceeded many analysts' expectations. Before the report was released, they were forecasting the economy to clock in at a 3.6 percent annual rate.
Meanwhile, some good news on the inflation front
An inflation gauge tied to the GDP report showed overall inflation picking up in the third quarter. But excluding food and energy prices, "core" inflation — something the Federal Reserve pays close attention to — actually moderated. Core inflation rose at a rate of 1.3 percent in the third quarter, down from a 1.7 percent pace in the second quarter.
In another inflation barometer, employers' labor costs — wages and benefits — rose 0.8 percent in the third quarter, up slightly from a 0.7 percent increase in the second quarter, the Labor Department reported. The showing for the third quarter matched economists' forecasts.
But you would never know this reassuring news because
The report comes as President Bush, faced with sagging approval ratings, struggles to improve the public's confidence in his economic stewardship. Three—quarters of those surveyed rate the current economy as fair or poor — and most blame Bush, according to an AP—Ipsos poll.
But now you know. And this isn't an early Halloween story either.
Ethel C. Fenig 10 28 05