GDP increase welcome, but many areas of concern continue
Another small increase in GDP (0.2 percent) in the three months to September is welcome but it does not allay concern at the state of manufacturing and construction, and the prospects of continuing unacceptable levels of unemployment for some years, said CTU Economist and Policy Director Bill Rosenberg today.
“Manufacturing production fell a further 1.9 percent in the quarter, 11.9 percent from the same quarter last year, and is now down to June 1999 levels,” said Rosenberg. “Construction fell 4.4 percent, and residential building investment had its eighth consecutive quarter of falling production. Business investment is weak and still declining.”
“We remain concerned at the prospects for unemployment for at least the next two to three years. Treasury forecasts last week were for 7.0 percent unemployment in 2010, 6.9 percent in 2011 and 6.0 percent in 2012. Private sector consensus forecasts are even higher.”