January 4, 2008 Treasury Economic Update 1.4.08 "Today's employment report reflects the impacts of the challenges facing the Assistant Secretary Job Growth: 18,000 new jobs were created in December, the 52nd straight month of job gains. The Low Unemployment: The unemployment rate rose to 5.0 percent in December from 4.7 percent in November. Unemployment rates have declined in 23 states and the There Are Still Many Signs of Economic Strength: Economic Growth: Real 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: Exports: Strong global growth is boosting Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.3 percent over the 12 months ending in October. (Last updated: 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: Americans Are Keeping More of Their Hard-Earned Money: Real after-tax income per person increased 2.1 percent over the past 12 months (ending in November). (Last updated: Pro-Growth Policies Will Enhance Long-Term 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 |
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