If Democrats were hoping for good news on the economy leading into Tuesday’s elections they didn’t get. Third GDP came in at an anemic 2.0%:
The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, a sign the expansion is developing staying power.
The increase in gross domestic product matched the median forecast of economists surveyed by Bloomberg News and followed a 1.7 percent gain the prior three months, Commerce Department figures showed today in Washington. Household purchases, about 70 percent of the economy, rose at a 2.6 percent pace, the best quarter of the recovery that began in June 2009.
The only real bright stop in the report was rise in consumer spending, which rose 2.6% in the quarter. The best gain in four years. The bad news is the economy is essentially stagnant… 2.0% growth in GDP isn’t enough to create jobs, and will likely to lead to more layoffs.
Anyway, if the trend continues and the GDP numbers are revised downward next month the blame will fall on President Obama, not the lame duck Congress.