WASHINGTON (MNI) – While the continued U.S. economic expansion is
encouraging, clearly, faster growth is needed to replace the jobs lost
in the downturn., Austan Goolsbee, chairman of the White House Council
of Economic Advisers said in a blog post following release of the
advance first quarter GDP report.
The complete statement follows:
Today’s report shows that the economy posted the seventh straight
quarter of positive growth, as real GDP, the total amount of goods and
services produced in the country, grew at a 1.8 percent annual rate in
the first quarter of this year. While the continued expansion is
encouraging, clearly, faster growth is needed to replace the jobs lost
in the downturn.
Some key components of GDP continued to expand in the first
quarter. Consumer spending rose 2.7 percent at an annual rate, boosted
by a 2.9 percent increase in real disposable income that was due in part
to the cut in payroll taxes. Equipment and software investment increased
11.6 percent. Spending components that subtracted from GDP included
construction of nonresidential structures (-21.7 percent), federal
spending (-7.9 percent), and state and local government spending (-3.3
percent). On the production side, goods production rose at a 9.3
percent, roughly consistent with the previously-reported 9.1 percent
increase in manufacturing industrial production.
These data indicate that the measures put in place by this
Administration such as the payroll tax cut and business incentives for
investment are helping to foster growth. We will continue to work with
Congress to find ways to reduce spending, so that we can live within our
means and focus on the investments that are most likely to help grow our
economy and create jobs investments in education, infrastructure, and
clean energy.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MGU$$$,MAUDS$]
