The U.S. economy isn’t sticking to script – at least, so far as Team Romney is concerned.
GDP numbers released Friday show the total U.S. economic output rose 2% in the third quarter (above estimates and better than the previous quarter’s 1.3%). Consumer spending helped lead the small but politically important boost.
That follows news from the Bureau of Labor Statistics indicating the trend of jobless claims dropping continued again last week. Also, we heard good news in housing (yes, housing), where new home sales were up last month – their highest levels in almost two and a half years. More importantly, prices nationally also appear to be rebounding.
And it should be noted that while the economy is only inching forward, an inch looks like a mile when compared to the rest of the world.
Europe as a whole is still waiting for Greece to get its act together, while Spain may not be able to tap a new aid agreement before Germany’s prime minister faces a bailout-averse electorate in SEPTEMBER OF NEXT YEAR.
Oh, and China? There are fresh worries of a rise in unemployment in the world’s No. 2 economy, while leaders there try to avoid a hard landing as its economy slows.
What could derail this relatively fast-moving U.S. train? Congress. Business investment is slowing ahead of the “fiscal cliff” – when we find out what’s more important: tax cuts or social welfare programs.