What Slowdown? The Dangerfield Economy Rocks
Some key points from today's staff editorial in the WSJ, titled "What Slowdown?"
1. Consumer spending registered a strong 4.4% growth rate in the fourth quarter 2006.
2. Without housing and autos, real GDP rose 5.8% in the fourth quarter (it was 3.5% overall).
3. U.S. exports are booming, rising 10% in the fourth quarter and 9.2% for the year, adding 1.64 percentage points to GDP growth.
4. Exports to China rose by more than 30% in the first 11 months of last year, even without a major change in China's policy to peg the yuan closely to the U.S. dollar.