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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (2291)	3/1/2003 1:19:50 PM
From: Wally Mastroly	Respond to of 10065

On a more postive note: 4th Quarter 02 economic growth revised way up, to 1.4% rate WASHINGTON (AP) — The economy grew at a 1.4% rate in the final quarter of last year — twice as fast as the government first estimated. While the performance is still considered below par, it showed that the recovery didn't stumble as badly as previously thought. The revised reading on gross domestic product in the fourth quarter of 2002, reported by the Commerce Department Friday, is based on more complete data and marked a stronger showing than the miserable 0.7% growth rate reported a month ago. GDP measures the total value of goods and services produced within the United States and is considered the best barometer of the economy's health. The major factors in the upward revision to fourth quarter GDP were stronger investment by businesses in building up stockpiles of unsold goods and a slight boost to consumer spending, the main force keeping the economy going. Even though the new fourth-quarter estimate was slightly better than the 1% growth rate economists were forecasting, it still represented a big slowdown from the third quarter, when the economy grew at a brisk 4% pace. The economy has been coping with uneven growth as a quarter of strength has been followed by three months of weakness. Worries about a possible war with Iraq, the rollercoaster stock market and a lackluster job market are weighing heavily on the economy, economists say. The biggest factor holding back the recovery is the reluctance of businesses to make big commitments in hiring and in capital spending, due in part to uneasiness about war and generally to an uncertain business environment. To give the economy a push, President Bush has proposed a 10-year, $1.3 trillion tax-cut package. But Federal Reserve Chairman Alan Greenspan says a package isn't needed now. He is hopeful that when "geopolitical" uncertainties lift, businesses will be more willing to step up capital investment and hiring, which would boost economic growth. Economists believe the economy is picking up momentum in the current quarter, expanding at a rate of 2.5% or more. In the fourth quarter, stronger inventory building by businesses resulted in a 0.24 percentage point boost to GDP, a turnaround from the 0.56 percentage point reduction estimated a month ago. Consumer spending, which accounts for two-thirds of economic activity in the United States, increased at a rate of 1.5% in the fourth quarter. That marked a slight improvement over the 1% pace previously reported, but still was a big pullback from the robust 4.2% rate in the third quarter. In some encouraging news, businesses — after cutting capital investment for eight straight quarters, boosted that spending at a rate of 2.5% in the fourth quarter, better than the 1.5% growth rate previously reported. The new estimate marked the best showing since the third quarter 2000. All the strength, however, came from investment in equipment and software. Companies continued to cut investment in plants and other buildings. The housing market — one of the bright spots of the economy — continued to spur growth. Spending on residential projects grew at a 9.4% rate in the fourth quarter, stronger than the 6.8% pace previously reported.