August 3, 2007
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Treasury Economic Update 8.3.07
"The U.S. economy and the job market are healthy, with sustained job growth, low unemployment, and rising wages. Solid fundamentals will support continued growth in household spending and business investment."
Assistant Secretary Phillip Swagel, August 3, 2007
Job Creation Continues:
Job Growth: 92,000 new jobs were created in July and nearly 2 million new jobs have been created in the past 12 months. The U.S. has added 8.3 million jobs since August 2003 – more than all the other major industrialized countries combined. Our economy has seen job gains for 47 straight months. Employment has increased in 48 states and the District of Columbia within the past year. (Last updated: August 3, 2007)
Low Unemployment: The unemployment rate of 4.6 percent is close to the lowest reading in 6 years. Unemployment rates have decreased or held steady in 32 states and the District of Columbia over the past year. (Last updated: August 3, 2007)
U.S. Economic Fundamentals Remain Solid:
Economic Growth: Real GDP growth was 3.4 percent in the second quarter of 2007, supported by strong gains in business investment and exports. (Last updated: July 27, 2007)
Household Spending: Consumer spending has been affected by increased energy and food prices and weakness in the housing sector, but the job market is healthy and should continue to boost incomes and support household consumption. (Last updated: July 27, 2007)
Business Investment: Business spending on commercial structures and equipment strengthened in the second quarter. (Last updated: July 27, 2007)
Exports: U.S. exports grew by 6.8 percent over the past 4 quarters. (Last updated: July 27, 2007)
Tax Revenues: Tax receipts rose 11.8 percent in fiscal year 2006 (FY06) on top of FY05's 14.6 percent increase. As a share of GDP, FY07 receipts are projected to be above their 40-year average. (Last updated: July 13, 2007)
Americans Are Keeping More of Their Hard-Earned Money:
Real Wages Increased 1.3 percent Over the Past 12 Months (ending in June). This translates into an additional $444 above inflation for the average full-time production worker.
Pro-Growth Policies will Enhance Long-Term U.S. Economic Strength:
We are on track to balance the budget by 2012. The Mid-Session Review of the FY 2008 Budget shows that we are on track to achieve a small surplus in 2012. This year, the deficit is projected to be down to 1.5 percent of GDP. 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. The time has come for both political parties to work to achieve comprehensive earmark reform that yields greater transparency and accountability to the congressional budget process, including full disclosure for each earmark and cutting the number and cost of all earmarks by half.