BROWNBACK HIGHLIGHTS HEALTHY BUSINESS GROWTH
Business activity surges, beating predictions of stagnation and decline
WASHINGTON – U.S. Senator Sam Brownback today commented on several new economic indicators that, coming on the heels of last week’s lower than expected rate of GDP expansion, show an upbeat economy with strong signs of growth.
“While last week’s economic news about the GDP left room for improvement, a slew of new data released in recent days portrays an economy with strong business activity that exceeded expectations,” said Brownback. “Business growth surged ahead, factory orders are up, personal income increased and the economy added 88,000 new jobs in April. Naysayers might want to paint a picture of economic gloom, but the facts don’t support the claim that we’re heading into an economic tailspin.”
The Institute for Supply Management manufacturing index, which measures overall business expansion in the manufacturing sector and was expected to decline, defied predictions by rising 3.8 points in April. Manufacturing activity enjoys an upbeat outlook as new factory orders exceeded expectations, jumping 3.1 percent in March.
The ISM index of service-sector activity also rose in April and signals a robust pace of expansion in the service sector, which accounts for a majority of overall national output. Although adjustments in the housing sector have served as a drag on overall economic growth, strong growth in other areas has helped offset its effects.
April marks the 44th consecutive month with job gains, and today’s unemployment rate of 4.5 percent remains well below the recent peak of 6.3 in June 2003.
Brownback is the Senior Republican Senator on the Joint Economic Committee.
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“While last week’s economic news about the GDP left room for improvement, a slew of new data released in recent days portrays an economy with strong business activity that exceeded expectations,” said Brownback. “Business growth surged ahead, factory orders are up, personal income increased and the economy added 88,000 new jobs in April. Naysayers might want to paint a picture of economic gloom, but the facts don’t support the claim that we’re heading into an economic tailspin.”
The Institute for Supply Management manufacturing index, which measures overall business expansion in the manufacturing sector and was expected to decline, defied predictions by rising 3.8 points in April. Manufacturing activity enjoys an upbeat outlook as new factory orders exceeded expectations, jumping 3.1 percent in March.
The ISM index of service-sector activity also rose in April and signals a robust pace of expansion in the service sector, which accounts for a majority of overall national output. Although adjustments in the housing sector have served as a drag on overall economic growth, strong growth in other areas has helped offset its effects.
April marks the 44th consecutive month with job gains, and today’s unemployment rate of 4.5 percent remains well below the recent peak of 6.3 in June 2003.
Brownback is the Senior Republican Senator on the Joint Economic Committee.
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