Cleaning & Restoration Breaking News

Consumers Fuel Faster Economic Growth

November 30, 2004
/ Print / Reprints /
/ Text Size+
WASHINGTON (Reuters) - Robust consumer spending on cars, furniture and food helped the U.S. economy advance faster than first thought in the third quarter, a government report showed, while underlying inflation was the tamest in decades.

The Commerce Department said on Tuesday gross domestic product, the measure of all goods and services produced within U.S. borders, grew at a 3.9 percent annual pace in the three months from July through September, up from 3.7 percent estimated a month ago.

This was the second of three government estimates for quarterly GDP and beat Wall Street economists' predictions that the third-quarter advance would be unchanged from the first snapshot at 3.7 percent.

The gain marked the sixth successive quarter GDP has expanded at a rate exceeding 3 percent, implying healthy and sustainable growth.

Consumers ratcheted up spending at a 5.1 percent annual pace, more than three times the 1.6 percent rate in the second quarter and the strongest since a 7 percent surge in the fourth quarter of 2001. Consumer spending accounts for more than two-thirds of the $11-trillion U.S. economy.

Analysts said the GDP report was a reassuring sign that growth was on a safe track and added that it gave the Federal Reserve leeway to keep raising interest rates without fear of choking off growth.

Inflation data within the GDP report suggested the Fed has little to fear from price pressures.

A key price gauge favored by Fed Chairman Alan Greenspan -- the personal consumption expenditure index excluding food and energy costs -- rose at a mild 0.7 percent rate in the third quarter, the smallest pickup since a 0.5 percent gain in the fourth quarter of 1962.

U.S. central bank policy-makers next meet Dec. 14 to mull interest-rate strategy. They have lifted short-term borrowing costs at each of their last four gatherings and many economists expect another increase from a still-low 2 percent federal funds rate to come in December.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.


Have a limited marketing budget but realize the importance of neighborhood marketing? Try doorknob hangers, a low-cost, yet highly effective way to drum up more business. In this episode, John Braun discusses the value of this tactic as well as what you should include on the materials you're hanging.
More Podcasts

ICS Cleaning Specialist Magazine


2014 September

The September issue of ICS features stories on moisture detection, disinfectant services, neighborhood marketing, then we discuss the last level of being phenomenal, and cool products.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive


Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.pngcrc logo