"The Economy Grows More Than Expected"

Hurricanes. And more hurricanes. And now tornadoes. And yet, according to the report issued by the Commerce Department today, November 30, 2005

The economy grew at a lively 4.3 percent pace in the third quarter, the best showing in more than a year. The performance offered fresh testimony that the country's overall economic health managed to improve despite the destructive force of Gulf Coast hurricanes. 

Not confined to one sector, the good news spread throughout the economy;  the GDP, business and consumer spending, and investment and residential construction all increased more than expected while inflation increased less than predicted.  Although employment didn't do as well this period because of the storms, economists forecast improvement.

But the New York Times warns us this morning about good economic news:

But as always with the United States economy, it is not quite that simple....

It all means that the economy is likely to end the year with a splash, but that does not mean the broad economic picture next year will be even better.

But that's just the Times being the Times. Happy December.

Ethel C. Fenig   11 30 05