The indicators for the economy are looking good. For those who view the world through a political prism, this news may be coming too late to help the president and his party in the mid-terms. And for those whose view is long and wide, the skies are not entirely blue. There is the matter of labor force participation, which is historically low. Also home ownership, which is also in a deep trough. And interest rates will soon be rising. Still …
Third quarter GDP rose by 3.5 percent, as reported by Bloomberg. A good number, and one that exceeded expectations of 3.1 percent. (Skeptics may point to the impact of government spending on that number but a win is a win.)
And: First time claims rose very modestly, keeping the running average at a 40-year low. A good jobs trend may not cure all ills, but it makes many of them more bearable.
Another dominating trend in economic news is the declining price of oil. This, of course, shows up for the average person when filling up to make the commute. Lower oil prices are a kind of increase in discretionary spending since gasoline for the car is sort of like milk for the baby. Falling gasoline prices, then, are a quick means of putting cash in people’s pockets.
Think of it as a stimulus plan. Without all that central planning.
