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 Home > News & Policies > August 2005

For Immediate Release
Office of the Press Secretary
August 9, 2005

President Bush Discusses Agenda for Continued Economic Growth


Today, President Bush Met With His Economic Advisors To Discuss The Strength Of Our Economy. From new jobs to GDP growth to increased productivity to low inflation, America's economy today is strong. The economy has generated nearly 4 million new jobs since May 2003, and the unemployment rate is 5 percent, the lowest since before September 11.

  • President Bush And Congress Have Worked Together To Support Continued Economic Growth. President Bush has already won several key legislative victories in his second term, including the Central America and Dominican Republic Free Trade Agreement, energy legislation, and the highway bill, as well as class action and bankruptcy reform.
  • The President's Economic Agenda Is Based On His Fundamental Trust In The American People To Make Good Decisions. The President's policies allow more Americans to keep more of what they earn, and to have more control of their daily lives - from health care to education to their retirement.
  • President Bush Has Put Forth An Ambitious Agenda To Ensure That America's Economy Continues Robust Growth. To ensure the economy remains strong, President Bush has called on Congress to act on other aspects of his agenda. His plans include making his tax cuts permanent, restraining spending by the Federal government and cutting the Federal deficit in half, reducing unnecessary regulation, strengthening retirement security, reforming the tax code, protecting small business owners and workers from frivolous lawsuits, comprehensively reforming our immigration laws, and making health care more affordable for all Americans.

The Economy Is Strong And Continues To Grow

  • Strong and Steady Job Growth Continues - 207,000 New Jobs Created In July. Payroll employment rose by 207,000 in July, and the economy has created more than 2.2 million jobs over the past 12 months. We have seen steady job gains for each of the last 26 months - and more Americans are working than ever before.
  • Economic Indicators Show Sustained, Robust Growth. Recently released Commerce Department figures show that the U.S. economy grew at a solid 3.4 percent annual rate in the second quarter, the ninth straight quarter in which GDP increased at a rate above 3 percent. Smaller inventory figures from the most recent data also signal further growth in the near term.
  • Manufacturing Continues To Increase. The Institute for Supply Management, a private research group, reports manufacturing output expanded for the 26th consecutive month in July - and at a faster pace than in the previous month. ISM's manufacturing index rose to 56.6 last month, up from 53.8 in June.
  • Industrial Production Is Booming. Production increased at the fastest rate in 16 months, with the Federal Reserve reporting that industrial output increased 0.9 percent, nearly three times faster than the previous month's gain.
  • Demand For Durable Goods Increases. The Commerce Department reported that orders for durable goods in June rose by 2 percent, to a total of $216.7 billion - the third straight month of growth.
  • Consumer Spending Grows At A Healthy Rate. The most recent data show consumer spending up by a strong 0.8 percent, the biggest increase since July 2004. Retail sales grew at a higher-than-expected 1.7 percent.
  • No Signs Of Consumer Inflation. The Consumer Price Index (CPI) from the Labor Department indicates inflation is well contained.
  • Home Sales Continue To Set Records. Sales of both new and existing homes reached all-time highs, as the strong housing market continues to be powered by strong job growth and low interest rates. New home sales rose 6.1 percent from the first quarter, while sales of existing homes rose 5.6 percent.

Surge In Revenues Slashes Federal Deficit. An increase in revenue and spending restraint caused the deficit to decrease, and the mid-year budget forecast shows that the government is ahead of schedule to reach President Bush's goal of cutting the deficit in half by 2009.

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