Wicker Highlights Signs of Strong Economy

WICKER HIGHLIGHTS SIGNS OF STRONG ECONOMY

The nation's economy continues to gain strength as it surges back from the twin blows of recession and the terrorist attacks of September 11, 2001. Steady increases in job creation over the past 10 months represent just one of many economic indicators that signal a solid recovery is well under way.

While the national news media may be slow in reporting this positive news, the upward trend is evident throughout the economy. Statistics from U. S. Department of Labor and other sources show advances in the manufacturing and industrial sectors, retail sales, new housing starts, and consumer confidence.

JOB CREATION STRONG

The Bureau of Labor Statistics reported that 112,000 jobs were created in June. Some critics called the job gains a "slump" and suggested the economic recovery has stalled. Those assertions are wrong. In reality, the June report is consistent with the pattern of job growth that has produced an average of 211,000 each month since January and more than 1.5 million new hires in the last 10 months. Private forecasters expect the U.S. will maintain an average of 200,000 new jobs each month through the remainder of 2004. This trend is similar to the pattern of job creation in the economic expansion in the 1990s.

Unemployment rates have fallen across all levels of education, race, and age groups in the workforce. Unemployment claims are at their lowest level since October 2000. A private sector report that projects hiring trends indicates the business outlook for hiring is the best it has been in more than three years.

RECORD GDP GROWTH

Another sign of a robust recovery is the growth in gross domestic product (GDP). The GDP measures the output of goods and services produced in the U.S. Real GDP growth over the last three quarters has been measured at a 5.4 percent annual rate - the highest continued economic growth in 20 years.

Housing starts and building permits are running at their highest levels in two decades, and sales of new single-family houses reached a record high in May. The national home ownership rate during the first quarter of 2004 is a record high 68.6 percent.

The output of the nation's factories, mines, and utilities is up by six percent over a year ago, and manufacturing employment is up. The Institute for Supply Management survey notes that manufacturing activity is now running at its highest pace in 20 years.

Retail sales figures increased by nearly 12 percent during the first quarter of 2004 setting a pace that has doubled the average rate of growth over the past decade. A key element in any recovery is consumer confidence. Two respected organizations that follow these trends report that consumer confidence and sentiment are consistent with a sustained expansion of the economy. Consumer confidence is at its highest level in two years, according to the highly-respected Conference Board Index.

I believe the tax relief measures and pro-growth policies proposed by President Bush and enacted by Congress have been instrumental in this economic recovery. These initiatives continue on Capitol Hill this summer with efforts to make expiring tax cuts permanent and promote a wide-ranging agenda to boost competitiveness and create more job opportunity for all Americans.