January 27, 2006
JS-3088

Statement by Treasury Secretary John Snow
on the Release of Preliminary Estimates of Fourth
Quarter 2005 GDP

The advanced estimate of fourth quarter 2005 GDP released this morning is inconsistent with the underlying strength of the U.S. economy. 

I would not read too much into today's numbers.  They are somewhat anomalous, reflecting some special factors. They are not consistent with other data on the U.S. economy which paint a picture of good growth:

• Durable goods numbers are strong;
• The manufacturing sector is doing well;
• Labor markets strengthening;
• Unemployment is at historically low levels; and
• Initial claims for unemployment insurance are the lowest in five years;

The American economy is on a good course and I am very confident. I am optimistic about the first quarter and the year ahead and am confident that we will see strong growth for the year.

On a year-over-year basis the economy has grown at 3.5%, which is certainly good strong growth. We will look forward to revisions of the preliminary estimates in the coming months. Economic fundamentals point to continued strong economic performance in the United States in 2006. The U.S. economy is performing well.