Hillary Clinton just received some great news about the economy. Donald Trump says he want this election to be about change, but if inflation is low, unemployment is low, and economic growth is healthy, a lot of people are going to think that a continuation of the Obama presidency sounds pretty good.
In the third quarter of 2016, the real GDP grew at an annual rate of 2.9%. This is a healthy number, driven largely by a large increase in purchases of durable goods (cars, TV’s, etc.). Purchases of nondurable goods fell, and investment in residential housing also fell, for the second straight quarter. Exports were up considerably.
“This is still another reason why Trump will probably lose. The economy is in decent shape — so decent that the Fed will have to raise interest rates later this year,” said Greg Valliere, chief global strategist at Horizon Investments. “This report shows a solid economy with — ironically — decent export growth. Hillary Clinton simply has to avoid gloating. But this is a big plus for her, and she may get another pleasant surprise when the October jobs report is released next Friday.”
“It’s the economy stupid”…is a common refrain used during presidential elections. And the economy is looking just fine…not the doom and gloom that Donald Trump is espousing.
And for what it’s worth, “It’s the economy stupid”, was coined by democratic strategist James Carville as a campaign strategy for Bill Clinton’s successful 1992 presidential campaign against sitting president George H. W. Bush.