GDP growth doubles over 2nd quarter, signs encouraging

From the Bureau of Economic Analysis:

Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 2.5 percent in the third quarter of 2011 (that is, from the second quarter to the third quarter) according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.3 percent….

That’s a pretty good report. Not great, but decent. The details of the report are even more encouraging, because they suggest the growth was driven by more business investment and more consumer spending, the two most important factors in a recovery.

Durable-goods purchasing was up 4.1 percent, in contrast to a second-quarter decrease of 5.3 percent. Real nonresidential fixed investment increased 16.3 percent in the third quarter, compared with an increase of 10.3 percent in the second.

And inventory growth was down — “private businesses increased inventories $5.4 billion in the third quarter, following increases of $39.1 billion in the second quarter and $49.1 billion in the first.” In other words, the decent numbers weren’t driven by companies stockpiling inventory that wasn’t selling. To the contrary, “real final sales of domestic product — GDP less change in private inventories — increased 3.6 percent in the third quarter, compared with an increase of 1.6 percent in the second.”

That bodes well for future quarters, and perhaps for jobs.

– Jay Bookman

167 comments Add your comment

Adam

October 27th, 2011
8:49 am

Finn McCool

October 27th, 2011
8:49 am

Keep spending – it’s the only way out.

Finn McCool

October 27th, 2011
8:51 am

When you take into consideration all the theft and fraud and market manipulation and other evil stuff Wall Street bankers have been guilty of in the last ten-fifteen years, you have to have nads like church bells to trot out a propaganda line that says the protesters are just jealous of their hard-earned money.

Think about it: there have always been rich and poor people in America, so if this is about jealousy, why the protests now? The idea that masses of people suddenly discovered a deep-seated animus/envy toward the rich – after keeping it strategically hidden for decades – is crazy.

Matt Taibi

Adam

October 27th, 2011
8:52 am

Well, cool. This is good news, especially since this is a quarter that does not encompass a Black Friday. It is nice to know the economy is improving after all!

Keep Up the Good Fight!

October 27th, 2011
8:52 am

Good news for the country! Growth and the EPA is still here!

USinUK

October 27th, 2011
8:54 am

“That bodes well for future quarters, and perhaps for jobs.”

noes, jay … that can’t be so … I keep hearing that the economy is collapsing, so it must be true! and, I keep hearing that Obama’s the Worst Prznit EVAH … you’re saying he might not be???

that’s bound to cause some heads to a’splode.

Granny Godzilla

October 27th, 2011
8:54 am

This and the news form Europe…..

The markets will be fun to watch today.

USinUK

October 27th, 2011
8:56 am

they were soaring here at lunch today …

godless heathen

October 27th, 2011
8:57 am

The Republican House has fixed the economy. Hoo-Ray!!

Adam

October 27th, 2011
8:57 am

USinUK: I can’t wait to see the conservative reaction to this :) I’m getting popcorn!

ty webb

October 27th, 2011
8:57 am

and UsinUK, throws down the first partisan gauntlet…

Normal

October 27th, 2011
8:58 am

GAWD! GDP growth doubles over 2nd quarter, and it’s all Obama’s fault!

Adam

October 27th, 2011
8:58 am

godless: Right, because we know thanks to Eric Cantor that whatever the House passes automatically becomes the “law of the land.”

Adam

October 27th, 2011
9:00 am

I think the Republicans ought to watch this: I’m just a Bill! Then again, I think most of them know this and don’t WANT anything to become a law.

Dysfunctional is right.

Paul

October 27th, 2011
9:01 am

Any news like this is good news. I’ve friends (highly educated and competent professionals) who’ve been out of work for a long time. It isn’t just the blue-collar workforce that’s been affected.

Adam

October 27th, 2011
9:01 am

Woman on the radio this morning: “What the Republicans are doing is pretty effective. My kids used to do it. You do the deed then accuse the other side of doing it.”

USinUK

October 27th, 2011
9:01 am

ty – partisan to call your side out for it’s overheated rhetoric?

slap my butt and call me Sally.

Marie

October 27th, 2011
9:02 am

Don’t get too happy Jay, these numbers will be revised down next quarter (key word — advanced “estimate”).

Bosch

October 27th, 2011
9:02 am

“The Republican House has fixed the economy.”

How godless? Which laws have they passed?

Keep Up the Good Fight!

October 27th, 2011
9:02 am

ummmmm… USinUK, is that offer open for any takers? :lol: :lol:

Paul

October 27th, 2011
9:03 am

“slap my butt and call me Sally.”

Great. As if this blog didn’t attract enough drive-by weirdos, now USinUK sends out a clarion call for them -

Paul

October 27th, 2011
9:04 am

Bosch

Cool it, will ya’? It’s too early for facts.

Granny Godzilla

October 27th, 2011
9:04 am

Sally….You can call me AL.

Lord Help Us

October 27th, 2011
9:04 am

How did I miss this news…

Oh, I was reading FOX and their headline was ‘weekly jobless unchanged, GDP shows modest growth.’

Fair and Balanced…

USinUK

October 27th, 2011
9:05 am

Paul

October 27th, 2011
9:05 am

USinUK

Make that resident weirdos, as well.

Oh…. “HI” Keep!

:-)

USinUK

October 27th, 2011
9:06 am

Paul – 9:03 – :lol:

just doing my part

Misty Fyed

October 27th, 2011
9:06 am

It’s amazing what the hope for a new president can do.

Keep Up the Good Fight!

October 27th, 2011
9:06 am

Paul….this “weirdo” was already here. :lol: :P

Lord Help Us

October 27th, 2011
9:07 am

Well, let me go check Drudge… He’s been showing DOW charts and headlining economic news a lot…

Oh, nothing there…

It must not exist.

carlosgvv

October 27th, 2011
9:07 am

This is good news for all of the Country except Republican politicians, who would rather see us slide into a Great Depression. No doubt this report from the Bureau of Economic Analysis will be critized by the Republicans in evey way imaginable. Just what you would expect from a Party that is taking on more and more Facist characteristics.

Misty Fyed

October 27th, 2011
9:08 am

It’s not what laws the house passed… It’s the fact that they kept the dems from doing any more harm than they already have done.

USinUK

October 27th, 2011
9:08 am

Misty – you really need to be careful – a stretch like that can cause serious injury

godless heathen

October 27th, 2011
9:08 am

Bosch,

Maybe it’s not what they have done – but what they didn’t do. ;)

I thought since the Obama boot-lickers were going to give him full credit, and he has done nothing, I would just beat them to the punch.

HDB

October 27th, 2011
9:08 am

….and as the economy attempts to grow…..note this from the Washington Post:

Nation’s wealthiest 1 percent triple their incomes, according to CBO report

http://www.washingtonpost.com/business/cbo-top-1-percent-almost-tripled-incomes-fueling-inequality/2011/10/25/gIQAzbMrIM_story.html?fb_ref=NetworkNews

…..and the peons continue to suffer while the wealthy gain more!!

Granny Godzilla

October 27th, 2011
9:08 am

And then there is the dark side….

David Camp (R-MI)Releases Plan To Cut Corporate Taxes, Make Offshoring Jobs Easier

jm

October 27th, 2011
9:09 am

Finn. The whole point is additional spending has come to a stop. And the economy is still growing. In a healthier way. Jeeezzzz…….

ty webb

October 27th, 2011
9:10 am

“modest growth” from Fox?…well Jay must’ve really offended you with his mere “decent”…He went from “good” to”not great” to “decent” all in the first 2 sentences…dang Jay, you need to pick up you game.

Misty Fyed

October 27th, 2011
9:10 am

So the Republican’s take the house and make great gains in the Senate; the economy responds with an upswing and you think that is bad for republicans?

USinUK

October 27th, 2011
9:11 am

“The whole point is additional spending has come to a stop. And the economy is still growing. In a healthier way. ”

which is why it’s called a STIMULUS plan.

Paul

October 27th, 2011
9:11 am

Granny

What does that “R” after Camp’s name mean? Does it have anything to do with the philosophy that leads to such a ‘plan?’

Normal

October 27th, 2011
9:11 am

You can slap my butt and call me anything you want, but you have to tie me up and cuss at me first…

jm

October 27th, 2011
9:11 am

Lord. Markets don’t open until 9:30. So clueless.

Paul

October 27th, 2011
9:12 am

Misty

The election, then “the economy responds with an upswing”

We’ve all heard of lagging indicators, but this is stretching it, don’t you think?

jm

October 27th, 2011
9:13 am

USinUK 9:11 – stimulus expired a while ago. duh. economy still growing.

stop the stimulus. Even Lieberman is against more.

Misty Fyed

October 27th, 2011
9:13 am

I stretch every morning….thanks…

But seriously, why does credit have to go to anyone? Could it possibly be that the economy has improved regardless of congressional action?

The sun doesn’t only shine on congress.

Paul

October 27th, 2011
9:13 am

Congrats, USinUK

You win the ‘let’s see who can make the thread go downhill the earliest’ award!

Adam

October 27th, 2011
9:13 am

USinUK: Did you see Politifact’s ruling on that? Outrageous? They say:

“Job creation” means different things to different parties.

Most conservatives today are dead-set against traditional forms of government-based economic stimulus known as Keynesian economics, primarily spending initiatives. So if “job creation” is defined to primarily include Keynesian initiatives, then Republicans aren’t going to be sponsoring any “job creation” bills. Instead, Republicans argue that tax cuts and budget cutting will help the economy prosper.

Then go on to say:

…the definition of what constitutes a “job creation” bill is open to significant debate.

in order to support their “Pants on Fire” ruling.

It is absurd, because it basically is saying that the matter is open for debate, no facts are involved that support the Republicans supporting any job creation bills, the keywords of a conservative mindset (”Keynesian economics” and “stimulus”) are used, and all of this is used as a backbone to suggest that the picture is an out and out lie because the conservative idea of what “job creation” means is the correct one, and that the Democratic idea is incorrect.

I rule Pants on Fire for Politifact on this one. They have nothing credible to support such a harsh ruling. At worst, it should get a Mostly True for suggesting that only Republicans have sponsored social bills. But the Republican House has, in fact, spent a lot of time on social issues and very little on economic issues, and whatever economic issues they have focused on have been purely through reducing taxes and decreasing regulation.

St Simons - we're on Island time

October 27th, 2011
9:14 am

now that there is a documented demand increase, let’s see how much the “punished job creators” put in their pockets, and how much they put into jobs. It might be a 3-month lag there, but still, we’ll be able to see if it’s just business cycle or ideological domestic terrorism.

You’ll hear on, let me guess, Fox and rushedslimeball crap like “that’s just business just reducing inventories because of Obaaaamas economy blablabla “. No, take it from a beancounter, good businesses are increasing inventories in the 3rd and early Q4 in anticipation of Black Fri, holidays, and such, which accentuates the significance of this report.

Let’s see if the cons (who are to read here, great business tycoons all) celebrate this good news.

USinUK

October 27th, 2011
9:14 am

right – it’s aaaaalllllll the GOP

http://www.bea.gov/newsreleases/national/gdp/gdp_glance.htm

before they took office, the economy was floundering

:roll:

talk about historical revisionism

Granny Godzilla

October 27th, 2011
9:15 am

Paul

R stands for retrograde

USinUK

October 27th, 2011
9:16 am

jm – “USinUK 9:11 – stimulus expired a while ago. duh. economy still growing.”

and that’s the point, Poindexter – 1) that’s why it’s called a stimulus plan and 2) it did what it was supposed to do – STIMULATE the economy

Adam

October 27th, 2011
9:16 am

godless: No need to give Obama credit, but there is a GREAT need to call out the conservatives for saying he is destroying the economy and/or making it worse. He’s obviously NOT doing that. Can you admit that now?

If so, let’s move on to my idea of No New Tax Cuts and see if you will also agree to that. If you can agree to both I think we have a good starting point from which to actually fix problems instead of focusing on being the exact opposite of one another.

Bosch

October 27th, 2011
9:16 am

godless,

I kind of agree with that — it’s like my philosophy of sickness, see if you can get better on your own before you go to the doctor for intervention — same with the economy.

So, not so sure why everyone wants to say Obama is to blame for wrecking it.

stands for decibels

October 27th, 2011
9:17 am

and perhaps for jobs.

this lagging indicator will depend in no small part on what the tribal warlords in charge of the Chamber of Commerce (and affiliated domestic terror organizations) decide to do, I guess. Hold out for an unlikely Mittens victory and even sweeter (non) regulation whilst continuing to squeeze as much productivity out of the drones for another year?

(yeah, I exaggerate. a tad.)

Common Sense

October 27th, 2011
9:18 am

If you feel like you are benefitting and experiencing the largest economy in US history, then the GDP numbers will agree with you.

But if you are unemployed, and see businesses struggling around you, empty store fronts, and even fewer customers in stores buying things, then you have every right to question just how useful the GDP number is.

And if you subtract out the real rate of inflation(include energy and food costs), then you would not be so generous in your appraisal of the economy.

The first negative revision will be out in 30 days. Then the second in another.

Until then, party like it’s 1999. Because there’s at least 10% of you that won’t need to get up and go to work in the mornings.

Lord Help Us

October 27th, 2011
9:18 am

Why am I sensing that so many ‘Patriots’ are saddened by good economic news?

jm

October 27th, 2011
9:19 am

USinUK 9:16 – are you this daft? The stimulus is over, ie, not stimulating. And the economy is growing. Zoiks you’re dense.

Paul

October 27th, 2011
9:19 am

Adam 9:13

Perhaps Republicans in Congress ought to ask the Republican presidential candidates about government creating jobs? About all we hear from some of them is “I” created N jobs in my state.

jm

October 27th, 2011
9:20 am

stands for decibels

October 27th, 2011
9:20 am

Well, let me go check Drudge…

not without aspirin and a big glass of ice water handy for the c. 1997 html headache I get from viewing that site.

Bosch

October 27th, 2011
9:21 am

jm

October 27th, 2011
9:20 am

out

I think that’s probably a good thing, jm seems a little tense this morning.

USinUK

October 27th, 2011
9:23 am

“USinUK 9:16 – are you this daft? The stimulus is over, ie, not stimulating. And the economy is growing. Zoiks you’re dense.”

yes. it finished this year – it stimulated the economy.

and, dearheart, you are the LAST person who should be calling anyone dense. LIGHT can’t escape you. just sayin.

Thomas

October 27th, 2011
9:23 am

Ruth Madoff’s account of her attempted suicide- you can’t make this stuff up. She and Bernie took ambien- feel asleep- and woke up. It should be a commercial for Ambien.

She says the couple took “a bunch of pills” including the insomnia prescription medication Ambien, but they both woke up the next day. She says the decision was “very impulsive” and she’s glad they didn’t die.

USinUK

October 27th, 2011
9:23 am

Bosch – “jm seems a little tense this morning.”

tense? or dense?

Keep Up the Good Fight!

October 27th, 2011
9:25 am

The stim is over? Really, all those construction projects have been built? And there were no impacts? Oh I get it, jm’s post was not intended to be a factual statement.

Gordon

October 27th, 2011
9:25 am

Good news. I hope it continues.

jt

October 27th, 2011
9:26 am

The Weimar Republic had some good GDP figures too…………….
The problem was..only dumbazzes or quislings paid attention to them.

“From this, it might be wondered why any rational government would engage in actions that cause or continue hyperinflation. One reason for such actions is that often the alternative to hyperinflation is either depression or military defeat. The root cause is a matter of more dispute. In both classical economics and monetarism, it is always the result of the monetary authority irresponsibly borrowing money to pay all its expenses. These models focus on the unrestrained seigniorage of the monetary authority, and the gains from the inflation tax. In Neoliberalism, hyperinflation is considered to be the result of a crisis of confidence. The monetary base of the country flees, producing widespread fear that individuals will not be able to convert local currency to some more transportable form, such as gold or an internationally recognized hard currency. This is a quantity theory of hyperinflation.

In neo-classical economic theory, hyperinflation is rooted in a deterioration of the monetary base, that is the confidence that there is a store of value which the currency will be able to command later. In this model, the perceived risk of holding currency rises dramatically, and sellers demand increasingly high premiums to accept the currency. This in turn leads to a greater fear that the currency will collapse, causing even higher premiums. One example of this is during periods of warfare, civil war, or intense internal conflict of other kinds: governments need to do whatever is necessary to continue fighting, since the alternative is defeat. Expenses cannot be cut significantly since the main outlay is armaments. Further, a civil war may make it difficult to raise taxes or to collect existing taxes. While in peacetime the deficit is financed by selling bonds, during a war it is typically difficult and expensive to borrow, especially if the war is going poorly for the government in question. The banking authorities, whether central or not, “monetize” the deficit, printing money to pay for the government’s efforts to survive. The hyperinflation under the Chinese Nationalists from 1939 to 1945 is a classic example of a government printing money to pay civil war costs. By the end, currency was flown in over the Himalayas, and then old currency was flown out to be destroyed.
.
Now it is “washed” through the IMF, the ME, or Washington.
As far as corruption…………..no difference.

USinUK

October 27th, 2011
9:27 am

USinUK

October 27th, 2011
9:28 am

3.9% CPI is “hyperinflation”???

http://www.bls.gov/news.release/cpi.nr0.htm

good grief, the level at which some people just don’t get it has me gobsmacked

Peadawg

October 27th, 2011
9:28 am

Good to hear. Obama needs something good to happen.

Peadawg

October 27th, 2011
9:29 am

I’m still waiting to here plans to reduce our $15 Trillion in debt…..

Butch Cassidy

October 27th, 2011
9:29 am

I heard that it was all due to Herman Cain. ;)

USinUK

October 27th, 2011
9:30 am

Butch – 9:29 – *snort*

Finn McCool

October 27th, 2011
9:31 am

And we hate the rich? Come on. Success is the national religion, and almost everyone is a believer. Americans love winners. But that’s just the problem. These guys on Wall Street are not winning – they’re cheating. And as much as we love the self-made success story, we hate the cheater that much more.

In this country, we cheer for people who hit their own home runs – not shortcut-chasing juicers like Bonds and McGwire, Blankfein and Dimon.

~Taibbi, again

Bosch

October 27th, 2011
9:34 am

USinUK,

I was trying to be nice. :)

Keep Up the Good Fight!

October 27th, 2011
9:34 am

Well Pea, if the Republicans would quit blocking the jobs bill, then added to the end of the Iraq war and a growing economy, hopefully the growth curve will not be as steep. Once the Bush tax cuts are ended and we get to rational tax policy (not 9-9-9 or anything the R’s have), we’ll begin to pay down that debt much like a homeowner pays a mortgage over time. Hang on little one, we’re gonna get this right for the 99% yet and that helps the 1% who are not asshats. :D

1811/0311

October 27th, 2011
9:36 am

“That bodes well for future quarters, and perhaps for jobs.”

I hope so …………… but you employers out there just remember to never hire an “Occut*rd”.

There are ALWAYS better qualified applilcants who need that job just as much !

USinUK

October 27th, 2011
9:36 am

Butch – thanks to your 9:29, I’m still giggling over Jay’s funny last week:

9+9+9 = 27 = estimated crowd at speech.

http://blogs.ajc.com/jay-bookman-blog/2011/10/21/herman-cain-live-explaining-latest-9-9-9-version/#comment-760658

Jm

October 27th, 2011
9:37 am

Europe bailing out banks

Market popping. Boiiyah

USinUK

October 27th, 2011
9:37 am

“but you employers out there just remember to never hire an “Occut*rd”.”

particularly if you love your lawyers … because they’re going to reap the rewards of all the lawsuits

TaxPayer

October 27th, 2011
9:37 am

Further proof that if the Republicans will, at the very least, do nothing, we do have a shot at recovering. It’s only when they try to “help” that things fall apart. :lol:

Keep Up the Good Fight!

October 27th, 2011
9:38 am

Why does Scout hate his fellow marine vets? Oh that is right…something about a hat

Butch Cassidy

October 27th, 2011
9:38 am

USinUK – “Butch – thanks to your 9:29, I’m still giggling over Jay’s funny last week:”

No problem, you know what they say: “Once people get on the Cain Train, they never get off.” :)

Bosch

October 27th, 2011
9:38 am

“but you employers out there just remember to never hire an “Occut*rd””

Why Scout? And why don’t you let us employers decide who is the best qualified for the job, k? You don’t speak for no one but you.

TaxPayer

October 27th, 2011
9:39 am

I wonder how Scout feels about that war vet that got critically injured out in Oakland.

Redneck Convert (R--and proud of it)

October 27th, 2011
9:41 am

Well, that there GDP would of tripled if a godly Republican was in the White House, is all I’m saying.

Have a good Thursday everybody.

TaxPayer

October 27th, 2011
9:41 am

I’m still waiting to here plans to reduce our $15 Trillion in debt…..

Why don’t you tell us all how much Paul Ryan’s plan would reduce the debt, just to get the ball rolling. What do ya say.

Don't Tread

October 27th, 2011
9:41 am

Looks like someone tried to “occupy” an evil rich person’s house….didn’t work out so well.

Burglar Shot By Buckhead Homeowner

USinUK

October 27th, 2011
9:41 am

Tax – didn’t you hear? he’s privately bankrolled by George Soros

ragnar danneskjold

October 27th, 2011
9:42 am

At the current growth rate, we should see improvement in the business environment and normal economic improvement somewhere around 16 months from now.

Butch Cassidy

October 27th, 2011
9:42 am

1811/0311 – “I hope so …………… but you employers out there just remember to never hire an “Occut*rd”.”

I’m fairly confident that employers would be prohibited from asking a potential candidate about their political views as a qualification for employment. Kind of like the myth surrounding employers arbitrarily firing all the employees who had Obama stickers on their bumpers.

USinUK

October 27th, 2011
9:42 am

don’t tread – the intruder was drunk – he must’ve thought it was his place … doesn’t that happen to everyone at one time or another?? ;-)

md

October 27th, 2011
9:42 am

Until housing gets straightened out, it will be a very slow recovery. And with 1/4 of folks upside down, they will have to stay put unless they can afford to eat the difference or the banks come up with some type of product that allows for the transfer of the difference.

And these are the ones that are actually still paying the mortgage………..

Peadawg

October 27th, 2011
9:44 am

“Why don’t you tell us all how much Paul Ryan’s plan would reduce the debt, just to get the ball rolling.”

Nice deflection, TaxPayer. I believe Paul Ryan’s “plan” has proven to be a load of sh*t. You’re turn, punkin.

Don't Tread

October 27th, 2011
9:45 am

No, I can’t say I’ve ever been drunk and broke into someone else’s house.

1811/0311

October 27th, 2011
9:46 am

The phrase is “Better Qualified Applicant” …….. or don’t fill the position right then.

You can always find ways to weed out the undesireables.

We will never be at 100% employment so let the “Occut*rds” always be last. Someone has to be.

USinUK

October 27th, 2011
9:46 am

Don’t Tread – do they not have winkie faces where you’re from?

Butch Cassidy

October 27th, 2011
9:47 am

USinUK – “the intruder was drunk – he must’ve thought it was his place … doesn’t that happen to everyone at one time or another??”

Hell, that’s just another weekend for me. Why do you think we New Yorkers have so many locks on our doors. :)

USinUK

October 27th, 2011
9:47 am

Scout – hate to break it to you, dearheart – but the minute you ask if someone participated in the protest, you’ve just opened up the can o’ worms.

have fun stormin’ the castle!