Stimulus pushes US economy out of recession – for now
After nearly two years of recession, the US finally reported economic growth for the September quarter of 3.5%. This is quite a good result, comparable to the best quarters of the last four years.
According to the Commerce Department, the biggest single contributor to growth was the cash for clunkers program – motor vehicle output added 1.66% of the 3.5% reported. The next biggest contributor appears to have been the combination of home buyers credit and low interest rates boosting housing purchases.
Pretty clear evidence that the government stimulus programs are having the desired effect.
Most American I know don’t feel that the recession has ended, so it will be interesting to see how economic growth continues without the strong, direct stimulus of a cash for clunkers type of program. On the other hand, about half of the stimulus package remains to be spent, so this may continue to keep the economy’s head above water until underlying growth returns.
