[Vision2020] Economy Finally Back in Gear

[Tom Hansen]

Courtesy of CNN at

http://money.cnn.com/2009/10/29/news/economy/gdp/index.htm

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Economy finally back in gear
Government says GDP grew 3.5% in third quarter, ending a year-long string
of declines and coming in better than forecasts.
By Chris Isidore, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- The U.S. economy grew at a 3.5% annual rate in
the third quarter, ending a string of declines over four quarters that
resulted in the most severe slide since the Great Depression.

The growth, reported by the government Thursday morning, was slightly
stronger thanexpectations. Economists surveyed by Briefing.com had
forecast 3.2% growth in gross domestic product, the broadest measure of
the nation's economic activity. The economy shrank at a 0.7% rate in the
second quarter.

The positive GDP report is one more sign that the economy has likely
pulled out of the deep recession that started in December 2007.

The reading by itself doesn't mark an end to the recession; the economy
actually grew in the second quarter of 2008. (The National Bureau of
Economic Research, which officially dates the beginning and end of
recessions, is not expected to declare that the current recession has
ended until sometime in 2010.)

But the stronger-than-expected growth is likely to lead more economists to
declare that the economy hit bottom earlier this year and turned higher at
some point in the summer.

A rebuilding of inventories by businesses that had slashed production and
jobs over the past year was a major contributor to the growth in the third
quarter. So was a rebound in auto sales, which were helped by the
government's Cash for Clunkers program. The economic stimulus package,
with public works projects and aid to state and federal governments, also
boosted growth.

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Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho

"The Pessimist complains about the wind, the Optimist expects it to change
and the Realist adjusts his sails."

- Unknown