July 15, 2005
JS-2636

Statement of Assistant Secretary for Economic Policy
Mark J. Warshawsky on Economy

Economic data out this week showed an economy that continues to strengthen - this is good news for American workers and their families. There was excellent news on deficit reduction with revised budget forecasts showing that the President's pro-growth policies, by stimulating economic growth, have increased Treasury receipts and therefore decreased the budget deficit. By continuing to hold the line on spending and growing the economy we're on a path to more than meet the President's goals of cutting the federal budget deficit in half by 2009, which bodes well for economic growth and stability.

Government data this week also shows that there was a sizable June increase in retail sales. Combined with upward revisions to April and May retail sales numbers, this points to a strong increase in consumer spending in the second quarter, another sign of a healthy economy. This week's consumer price index report showed that inflation remains low. And the Federal Reserve's report today on industrial production showed solid growth in June. Altogether these numbers paint the picture of a robust economy, and one that is on a favorable path for continued growth.