Maybe it was the warm weather, but the U.S economy experienced an annual growth rate of 3.5% from July through September, effectively outpacing most of the other developed countries in the world.
The third-quarter growth saw significant gains in business investment, exports and the largest increase in military spending in five years. It followed a 4.6% annualized expansion from Q2, which experienced an impressive reversal from the first quarter of 2014, when a harsh winter apparently depressed activity.
Many economists opine that important decisions by government agencies, particularly the Federal Reserve, are now paying off in terms of economic strength. The improving economy led the Fed to recently cease its stimulative bond buying program, which began during the 2008 financial crisis in an attempt to revive a moribund economy by buying trillions of dollars in bonds to reduce long-term interest rates. The report on the gross domestic product (GDP), the economy’s total output of goods and services, added credence that the Fed’s efforts have translated into continuing job growth and economic recovery.
In an article appearing in The Washington Post from the Associated Press, Doug Handler, chief U.S. economist at IHS Global Insight, stated, “’Its greatest impact was instilling confidence in consumers and the business community that Fed officials were determined to do everything they could to stimulate growth. To know you have the Fed pulling for you instills confidence.’”
Dan Greenhaus, an analyst with investment firm BTIG, added, “’The economy does appear to be accelerating of late”, adding that the GDP report showed an economy that is “’on a sounder footing today than at any time over the last few years.’”
The Post article avers “It’s American consumers who drive the U.S. economy. They account for nearly 70 percent of the economy, and things are looking up for them. The job market is healthier than it’s been in a while, with the unemployment rate at a six-year low of 5.9 percent. And falling gas prices frees up money for consumers to spend on other things that help fuel growth.”
In the same news report, Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University, claimed “compared with other major economies, the U.S. moved more quickly to bolster its banking system. And consumers’ finances are in better shape because many Americans have pared debt. ‘The problem in Europe is that they let the problems fester and get worse because they did not act as quickly as we did.’”
James Marple, senior economist at TD Bank Group, cautions that, “’Going forward, the appreciation in the U.S. dollar and slow growth in Europe and Asia are likely to once again make trade a net-drag on American economic growth.’”
Despite the improving economy, at Client First Bankruptcy we know that many Americans are still unemployed, underemployed or forced to work multiple jobs. If you are contemplating filing for a Chapter 7 or Chapter 13 personal bankruptcy due to continued unemployment, do not proceed without an experienced and knowledgeable bankruptcy attorney from Client First Bankruptcy at your side. For your free initial consultation, please call us toll-free at 800-383-6004; we answer our phone 8:30 a.m.-6:00 p.m. Central Time for your convenience. And log onto www.clientfirstbankruptcy.com for important information about your personal bankruptcy anytime.