logo


Economy Finds Its Footing Consumer Spending, Stimulus Fuel Growth, but Some Wary of Weak Recovery
Friday, October 30, 2009 2:57 PM


(Source: Milwaukee Journal Sentinel)trackingBy DIANA MARRERO

By DIANA MARRERO

Washington -- After more than a year of contraction, the U.S. economy grew in the third quarter, signaling a possible end to the worst economic downturn since the Great Depression.

The 3.5% growth in the Gross Domestic Product was largely fueled by an increase in consumer spending, much of which could be attributed to government programs designed to spur the sales of cars and homes. Billions of dollars in federal spending as part of the economic stimulus package also likely contributed to the growth, economists say.

The numbers reported by the Commerce Department on Thursday don't necessarily mean the economy is doing well. The nation's unemployment rate, which reached a record 9.8% last month, is expected to remain high for at least another year. And many economists predict that the economic gains linked to government programs could soon start to wane.

But White House officials hailed the third-quarter numbers, saying that, without the stimulus package and other government intervention, the GDP likely would have risen little, if at all.

Republicans, however, argued that massive federal spending had done nothing to boost jobs while adding billions to the national debt.

Amid a tense political backdrop, White House officials and members of Congress say they are continuing to look for ways to help spur job creation. Among the measures being discussed: a possible extension of unemployment benefits, additional federal aid to states, middle-class tax cuts and more federal spending on infrastructure projects.

Rep.




(0)
No Comments
Post Comment
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
   
 
 
 
 
   
 

  
Related Press Releases
Advertisement
Popular Articles
Advertisement
Partner Center
Fundamental data is provided by Zacks Investment Research, market data is provided by AlphaTrade. , and Commentary and Press Releases provided by Quotemedia