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Snow says US economy in `new phase` of growth, jobs lag
Washington, Nov 06: US Treasury Secretary John Snow has said the world`s biggest economy has entered a `new phase` of growth but job creation lags behind.
Washington, Nov 06: US Treasury Secretary John Snow has said the world`s biggest economy has entered a "new phase" of growth but job creation lags behind.
The economy expanded at a 19-year record annual pace of 7.2 per cent in the third quarter of this year, according to preliminary government figures, he said yesterday.
"While it will be difficult to grow at quite that pace in the coming quarters, it seems clear that we have entered a new phase of economic expansion," he said in a prepared speech to economists.
"Much of the strength we saw in the third quarter is likely to continue. In other words, this is not a fleeting glimmer -- there is real muscle behind the growth trend."
Despite early signs of an upturn in jobs, however, labour markets appeared to be taking longer to respond to the rising economic activity, the treasury secretary said in his speech to the economic club of Washington.
Unemployment figures for October are to be released tomorrow.
Analysts widely expect the jobless rate to be stuck at 6.1 per cent, unchanged from September, as businesses hire an extra 65,000 workers, modestly up from 57,000 in September.
"Professional forecasters expect that the acceleration in real growth in the third quarter and over the following four quarters will lead to a sizeable increase in employment," Snow said.
But, "though positive signs are emerging and the outlook is positive, it appears to be taking longer for labour markets to respond to the upturn in economic activity," he said.
Bureau Report
"While it will be difficult to grow at quite that pace in the coming quarters, it seems clear that we have entered a new phase of economic expansion," he said in a prepared speech to economists.
"Much of the strength we saw in the third quarter is likely to continue. In other words, this is not a fleeting glimmer -- there is real muscle behind the growth trend."
Despite early signs of an upturn in jobs, however, labour markets appeared to be taking longer to respond to the rising economic activity, the treasury secretary said in his speech to the economic club of Washington.
Unemployment figures for October are to be released tomorrow.
Analysts widely expect the jobless rate to be stuck at 6.1 per cent, unchanged from September, as businesses hire an extra 65,000 workers, modestly up from 57,000 in September.
"Professional forecasters expect that the acceleration in real growth in the third quarter and over the following four quarters will lead to a sizeable increase in employment," Snow said.
But, "though positive signs are emerging and the outlook is positive, it appears to be taking longer for labour markets to respond to the upturn in economic activity," he said.
Bureau Report