U.S. Chamber Says GDP Numbers Signal Moderate Growth

WASHINGTON, D.C. – The United States Chamber of Commerce said the new Gross Domestic Product numbers out this morning show the long anticipated moderation in the rate of economic growth may finally be at hand.

"Today's numbers reflect a more moderate and more evenly balanced economy, showing healthy signs of future growth potential," said Martin Regalia, Chamber vice president and chief economist.

Gross Domestic Product grew at an annual rate of 2.7 percent in the third quarter of 2000. Inflation, as measured by the GDP price index, decelerated in the third quarter to a 2.0 percent annual pace.

Investments in high-tech capital equipment and software are on pace for double-digit growth for the year, Regalia noted. These types of investments pay dividends to the economy both in current GDP growth and in future productivity growth. Providing such capital allows American workers to produce more output with less effort and time, and in turn fosters wage gains without corresponding price increases or profit loss.

"All in all, today's numbers from the Department of Commerce are welcome news of a resilient economy coming in for a soft landing, healthier for its more moderate, balanced rate of growth," said Regalia. "This should help ease the Fed's mind about inflationary threats."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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