Economic Update

The US GDP grew by 4.8% in the first quarter of 2006. Household spending rose 5.5% while durable goods orders shot up 20.6%. Government spending increased by 10.8%. Disposable income grew by 3.8% while the Personal Savings Rate dropped 1/2 percent. Companies increased their investment rate by 14.3% with software and equipment investment leading the way. Exports climbed 12.1% while imports expanded by 13%. Inflation increased by 2%.*

These are indicators of a formidable economy. For comparison; the Chinese economy has been growing by about 10% for the last ten years. Such growth has natural corrections, but I'm sure China is immune from that kind of thing (jape). Assuming they maintain that level of growth, their GDP will surpass our current GDP in twenty years. Unfortunately for those preaching China's coming economic dominance, if the US averaged a modest growth rate of 3%, China's GDP would still be half that of the US.

UPDATED FIGURES

* United States Commerce Department