Friday, October 17, 2003


Howard Dean and the other dwarves keep blasting the economy just as good news hits the wire (via Reuters):
Consumer sentiment rebounded in early October while U.S. home builders accelerated new construction in September to a near 17-year high, according to two reports that added to this week's evidence of fast-paced economic growth.

Other data this week have revealed that while consumer spending eased in September, spending was far stronger in August and July than originally estimated. That means gross domestic product in the third quarter could have been as high as 7 percent -- the best since the end of the late-1990s boom.

The University of Michigan said its preliminary gauge of consumer sentiment rose to 89.4 from a final reading of 87.7 the prior month, beating forecasts.

"It shows that consumers are sensing some good news on the job front and the income front," said Kurt Karl, head of research at Swiss Re in New York.

A separate report from the U.S. Commerce Department ( news -web sites ) showed ground-breaking for new homes jumped 3.4 percent to a seasonally adjusted annual rate of 1.888 million units in the month, beating expectations and up from an upwardly revised 1.826 million pace in August.

Taken together, the news this week has had many economists upwardly revising forecasts for growth and employment next year. Federal Reserve ( news -web sites ) officials have also expressed optimism that the hearty pace of expansion will lead to healthy hiring soon.
Still want to repeal all of the Bush tax rate cuts, Mr. Dean?

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