Administration Actions Are Helping to Fuel Economic Recovery
The American economy grew at a rapid pace of 7.2 percent during the
quarter of this year - the best since 1984. The growth rate accelerated
from a 3.3 percent rate in the second quarter.
The President's Jobs and Growth tax relief package helped
fuel the surge in the economy in the third quarter. It brought
economic activity to a higher level, which increases incomes and
living standards for American workers.
The President's policies will continue to provide s
ubstantial stimulus over the coming year. While most private
forecasters predict the economy will not continue to grow as
fast as it did in the third quarter, they expect it to be
above the historical average.
Job creation has yet to take hold. But there are signs
that the labor market is starting to improve, such as the
recent decline in new claims for unemployment insurance and
the recent increases in temporary employment.57,000 new jobs
were created in September, the first gain in non-farm payroll
employment since January.
Other promising signs for the economy include:
The value of U.S. stock markets has increased $2 trillion since
the beginning of this year.
Disposable personal income is up 5.8 percent at an annual rate in
The U.S. homeownership rate was 68.4% in the third quarter-its highest
Productivity growth remains strong, which has bolstered business
Orders of manufacturing goods have been increasing since earlier this
Shipments of durable goods have increased since this summer after a
decline and stagnation. Orders have been above shipments since early
suggesting future strengthening.
Consumer confidence has also increased. Measures of consumer
are well above the levels seen just before the Iraq war.
America's economy experienced the unprecedented triple shock of a
economic disruption due to September 11 and the War on Terrorism, and
accounting scandals. President Bush acted promptly to help America's
by providing tax relief to put more money in families' pockets and
businesses to grow and invest. Tax relief brought substantial savings to
families and helped fight back the effects of the recession. Without the
President's tax cuts, as many as 1.5 million additional Americans could
lost their jobs.