December 7, 2007
HP-722
Treasury Economic Update 12/7/2007
"Today's data indicate that the labor market remains healthy, with a low unemployment rate and continued job growth. We expect the economic expansion to continue even with the challenges we face in the housing and credit markets."- Assistant Secretary Phillip Swagel, December 7, 2007
Job Creation Continues:
Job Growth: 94,000 new jobs were created in November, the 51st straight month of job gains. The United States has added 1.5 million jobs in the past 12 months and about 8 and a half million jobs since August 2003. Employment increased in 48 states and the District of Columbia over the year ending in October. (Last updated: December 7, 2007)
Low Unemployment: November's 4.7 percent unemployment rate is close to its lowest reading in 6 years. Unemployment rates have declined in 25 states and the District of Columbia over the year ending in October. (Last updated: December 7, 2007)
There Are Many Signs of Economic Strength:
Economic Growth: Real GDP growth was 4.9 percent in the third quarter of 2007, supported by strong gains in business investment and exports. (Last updated: November 29, 2007)
Business Investment: Business spending on commercial structures and equipment rose solidly in the third quarter. Healthy corporate balance sheets bode well for continued investment growth. (Last updated: November 29,2007)
Exports: Strong global growth is boosting U.S. exports, which grew by 10.2 percent over the past 4 quarters. (Last updated: November 29, 2007)
Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.2 percent over the 12 months ending in October. (Last updated: November 15, 2007)
Tax Revenues: Tax receipts rose 6.7 percent in fiscal year 2007 (FY07) on top of FY06's 11.8 percent increase. As a share of GDP, FY07 receipts exceeded their 40-year average. (Last updated: October 12, 2007)
Americans Are Keeping More of Their Hard-Earned Money:Real after-tax income per person increased 2.7 percent over the past 12 months (ending in October). (Last updated: November 30, 2007)
Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength:
We are on track to make significant further progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06. Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects the continued strength of the U.S. economy. Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs.