Bad news for Democrats--Economy expands
The U.S. economy grew at a solid 3.3 percent annual rate in the second quarter, much stronger than first thought, but many economists expect growth to flag as the year progresses.Just when the Democrats wanted to run against the great depression, they are the ones who are depressed because the economy grew at a sold rate despite the high oil prices and the housing mess made by the Democrats. This news comes only hours after Joe Biden was critical of McCain for saying the economy was basically sound. If Biden were running with an incumbent party he would be touting this economy. It just shows how cynical he and the Democrats are.
The U.S. Commerce Department on Thursday said consumer spending and net exports were more robust that initially estimated and that inventories fell less sharply. A month ago, it had said U.S. Gross Domestic Product had expanded at a 1.9 percent rate in the quarter.
Analysts polled by Reuters were expecting the annual rate to be revised to 2.7 percent.
U.S. equity index futures rose and the dollar pared losses, while Treasury debt prices fell on the report. Federal funds futures showed increased prospects for interest rate hikes.
"The market is gaining increasing confidence the strain in the financial markets and high oil prices will not tip the economy into a recession," said Jim Awad, chairman of W.P. Stewart & Co. Ltd in New York.