July 29, 2005


Economy grows despite high energy costs (JEANNINE AVERSA, 7/29/05, Associated Press)

The economy clocked in at a chipper 3.4 percent annual growth rate in the second quarter, fresh evidence the country's business climate is healthy despite surging energy costs.

The solid increase in the gross domestic product for the April-to-June quarter, reported by the Commerce Department on Friday, came on the heels of a larger 3.8 percent growth rate in the opening quarter of this year.

GDP measures the value of all goods and services produced within the United States and is considered the broadest barometer of the country's economic standing.

Despite the toll of elevated energy prices, consumers and businesses still managed to boost spending and investment modestly, helping to underpin overall economic growth in the second quarter.

"There has been a lot of hand wringing going on about high energy prices, consumer debt, fears of terrorism, fears of China, the housing bubble - the list is long and yet these numbers show there is a stealth boom going on in the business world," said Ken Mayland, president of ClearView Economics.

All the Democrat and press poor-mouthing in the world won't stop growth.

Posted by Orrin Judd at July 29, 2005 12:25 PM

OJ: Now wait just a minute. Are you sure? Something's really fishy here. Just 12 months ago this was the “worst economy since Hoover.”™

Posted by: John Resnick at July 29, 2005 12:48 PM

Scientific socialism says it's a bubble not a boom. Just you wait and see, exploiter.

Posted by: Luciferous at July 29, 2005 1:54 PM

Bull Markets climb up a wall of worry.

Posted by: Dan at July 29, 2005 2:30 PM

I've been busy (spending money) putting in a shop in 30 feet of my 70 foot poll barn, 11 feet high. Cement floor, new wiring, 6 new windows, 6 inch stud walls with 6 inches of insulation, steel ceiling with 6 inches of insulation, two overhead ceiling fans, 10 over head lights, sheet rock, joint compound, $55 worth of paint, new door. I am fueling this economic recovery!!

Posted by: AllenS at July 29, 2005 4:43 PM

"The worst economy since Hoover™" operates on a 4 year major cycle, with minor 2 and 8 year cycles. And it always seems to bottom out around October. Must be comething to do with sunspots and the World Series. I blame Bud Selig...

Posted by: Raoul Ortega at July 29, 2005 5:13 PM