News

Issues and events that shape Long Island's economic and legislative landscape.

Thursday, July 31, 2014

Statement From LIA Chief Economist John Rizzo on GDP and Jobless Claims

"GDP rose by 3.6% in the third quarter of 2013, substantially higher than preliminary estimates of 2.8%.  The reasons for the increase  were broad-based. with growth in private inventory investment, state and local government spending, personal consumption expenditures and exports.  Meanwhile, jobless claims declined by 23,000 to 298,000, significantly below economists' forecast of 320,000.  This is solid evidence that the economy is continuing to gain traction.  However, this good economic news has led to declines in the stock market, as it has stoked fears that the Fed will begin tapering its pro stimulus policies sooner.  But with unemployment still elevated well above pre recession levels, non existent inflation and plenty of slack in the economy, premature tapering would be unwise.  There is still much to be done to restore the US economy to full health and continued economic stimulation from the Fed is an important part of that."