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Friday, October 28, 2005


WHITE HOT: AMERICAN ECONOMY GREW 3.8 PERCENT IN THE THIRD QUARTER 

"WASHINGTON -- Hurricanes Katrina and Rita haven't blown the economy off course. Economic growth clocked in at a surprisingly strong 3.8 percent pace in the third quarter, reflecting brisk spending by consumers and businesses despite high energy prices.

The latest picture of the country's economic standing, released by the Commerce Department on Friday, showed a performance even better than the 3.3 percent growth rate from April through June.

The hurricanes' impact on the economy seems so far to be less penetrating than the immense toll on people and their livelihoods. Analysts said the economic expansion continues firmly rooted.

'The economy bulled its way forward during the summer and not even the destruction of a major city and other Gulf Coast communities could slow it down,' said Joel Naroff, president of Naroff Economic Advisors.

On Wall Street, release of the gross domestic product report sparked a rally, with the Dow Jones industrials soared 109 points in afternoon trading.

The GDP expansion from July through September topped the 3.6 percent growth rate that many analysts had forecast. GDP, which measures the value of all goods and services produced in the U.S., is the best gauge of economic fitness."

Economic Growth Strong Despite Storms

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