FROM THE OFFICE OF PUBLIC AFFAIRS

Today’s numbers show that our economic recovery is continuing. We are still on track to reach a growth rate of 3 to 3.5% by the end of this year.

The data show that the economy is on a solid growth path and the recovery is proceeding as expected. Consumers continued to spend in the second quarter. Both auto and non-auto retail sales closed the second quarter on a high note. New home sales and new home construction are booming. And mortgage refinancing is again surging. Inventory-sales ratios remain historically low, pointing to future increases in industrial output. According to today’s new data, business investment in equipment and software rose for the first time in nearly 2 years. And exports increased by 11.7%.

Another indicator of future growth is that, as of last week, more than 85 percent of S&P 500 companies reporting earnings met or beat expectations in the second quarter.

The revisions to last year’s numbers confirm what many Americans felt at the time in their household budgets. Our economy was operating at very sluggish levels for the first three quarters of 2001. The combined efforts of the Federal Reserve in cutting interest rates and President Bush in pressing Congress for quick action to cut taxes reversed the downturn and put us on a path to renewed growth.

While our recovery is continuing, we are eager to quicken its pace. For months, President Bush has been calling on Congress to give him Trade Promotion Authority, enact terrorism risk insurance and pass his energy plan, all of which will create jobs and increase economic growth. We’ll continue to work with Congress to complete the President’s economic growth agenda as quickly as possible.