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Friday, October 28, 2005

3.8 Growth in 3rd Q Despite Katrina

Tax cuts must not have helped I guess. Here are the numbers:

Economic activity expanded at an energetic 3.8 percent annual rate in the third quarter, providing vivid evidence of the economy's stamina even as it coped with the destructive forces of hurricanes Katrina and Rita...

An inflation gauge tied to the GDP report showed overall inflation picking up in the third quarter. But excluding food and energy prices, "core" inflation - something the Federal Reserve pays close attention to - actually moderated. Core inflation rose at a rate of 1.3 percent in the third quarter, down from a 1.7 percent pace in the second quarter.

In another inflation barometer, employers' labor costs - wages and benefits - rose 0.8 percent in the third quarter, up slightly from a 0.7 percent increase in the second quarter, the Labor Department reported. The showing for the third quarter matched economists' forecasts.

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