Commerce Department figures released on Thursday revealed that the U.S. economy grew at 1.7 percent in the second quarter. “The revised increase in gross domestic product was more than the median forecast of economists surveyed by Bloomberg News and compares with a 1.6 percent estimate issued last month, figures from the Commerce Department showed today in Washington.” [Washington Post, 9/30/10]
Consumer spending reported on Thursday was higher than previously estimated. “Higher consumer spending and inventory investment by businesses drove the upward revision to GDP, which is the broad measure of U.S. economic activity.” [Wall Street Journal, 9/30/10]
The Dow grew 7.7 percent last month, an increase stronger than any September since 1939. "Major indexes have been surging all month on signs of incremental improvement in the economy, which have allayed worries that the country would fall back into recession." [AP, 9/30/10]
The Treasury Department and American International Group (AIG) have finalized a plan to repay the Trouble Asset Relief Program funds that aided AIG during the financial crisis in 2008. “If successful, the approach could represent a triumph for AIG and the government, which committed more than $180 billion to rescuing the company during the financial crisis. Success depends heavily on AIG's ability to convince investors that it can operate as a viable insurance company. In short, if the stock soars, taxpayers will reap the benefits.” [Washington Post, 10/1/10]
Recovery Highlights
On Friday, the White House released a report “Progress Implementing the American Recovery and Reinvestment Act of 2009,” which states that the administration has met its goal of issuing 70 percent of Recovery Act funding within 18 months. The report also explains that lower-than-anticipated costs financed an additional 3,000 projects and only two percent of awards had complaints filed, much lower than the 5 to 7 percent of government contracts that typically attract complaints. "'Certainly, the fraud and waste element has been smaller than I think anything anybody anticipated' said Steve Ellis, vice president of Taxpayers for Common Sense, a nonpartisan watchdog group." [Washington Post, 10/1/10]
The Commerce Department announced a final round of Recovery Act grants on Monday. 14 grants, which totaled $207 million, were issued for the expansion of broadband infrastructure. “The program, as part of the Recovery Act, was designed to jump-start the economy and provide the underlying technology needed for new businesses and economic growth.” [Washington Post, 9/28/10]
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