October 29, 2009

IF THERE'S ONE THING ECONOMISTS KNOW FOR A FACT...:

U.S. Economy Began to Grow Again in the Third Quarter (CATHERINE RAMPELL, 10/30/09, NY Times)

The economic growthcame without a major surge in inflation. The price index for gross domestic purchases, a broad measure of prices that Americans pay for goods and services, increased at an annual rate of 1.6 percent in the third quarter, compared with an increase of 0.5 percent in the second, the department said. Excluding food and energy prices, the inflation index rose 0.5 percent in the third quarter, compared with an increase of 0.8 percent in the second. [...]

A slower drawdown in inventories was one bright spot in Thursday’s report, as it indicated that businesses have largely sold out their current stock and may rev up orders in the coming months to replenish supplies.

“Everybody had been dealing with a just-in-time status quo,” said Sandra Westlund-Deenihan, president and design engineer for Quality Float Works, a plant in Schaumburg, Ill., that manufactures metal float balls and valve assemblies. “They were living off inventories they’d built up over the last several years. Now they’ve drawn that down and reached a point where they may have to have it ready and back on the shelf again.”


...it's that government can't create all that money without causing inflation....

Posted by Orrin Judd at October 29, 2009 3:03 PM
blog comments powered by Disqus
« APPROPRIATE THAT IT FERRY CRUSADERS: | Main | THAT SISSY GEORGE W. BUSH WOULD HAVE JUST WATERBOARDED HIM...: »