WHITE HOUSE RELEASE OF ESTIMATED GDP 3rd QTR 2012
By: Hope Wilkos, Writer/Blogger Photographer: George Whylie Videographer: Maxine NolanReleased as an advanced estimate on Friday, October 26, 2012 by the Bureau of Economic Analysis, the real GDP (total amount of goods and services produced in the country) has grown at a 20% annual rate in Qtr 3 of this year. This is the 13th straight quarter of positive growth expanding the economy 7.2% overall. The private components of GDP have grown by 10.1%.
The GDP is made up of various parts:
Personal consumption expenditures increased by 2% at an annual rate in the 3rd quarter of 2012 compared with 1.5% in the previous quarter. Residential investment increased by 14.4% last quarter and has increased for six straight quarters now. Federal defense spending rose 13%, federal non-defense rose 3% and State and Local government purchases were essentially unchanged. Affecting more than half the country, the severe drought subtracted 0.4% points from the overall GDP growth.
To make sure that the economy continues to move in the right direction, President Obama has proposed a plan to Congress that would help State and Local Governments retain and hire teachers and first responders, assist the construction sector and economy of tomorrow by rebuilding and modernizing our nation’s infrastructure and give small businesses tax cuts to encourage them to increase payroll. One of the most promising proposals is to extend tax cuts to protect middle class families and every small business owner from getting a tax increase at the beginning of next year. This would encompass approximately 98% of American families and 97% of small business owners.
Thankfully, the economy continues to move in a more positive direction.
WHITE HOUSE STATEMENT WAS RELEASED BY ALAN B. KRUEGER, Chairman of the Council of Economic Advisors
