Unemployment rate drops to 7%
Wait, this is bad news?

GDP news gets better yet

The third (and final) GDP estimate for the third quarter revised growth up yet again, this time to 4.1%.  This figure indicates that growth was stronger in the third quarter than at any time since the end of 2011. The graph below shows quarterly growth rates since 2003.
Notice that 4.1% is larger than all but one quarter since before the Great Recession.  These are the kinds of growth rates we need if the economy is to truly recover from the Great Recession.  Finally, the revisions indicate that more of the growth came from consumption than previously thought.  The table below shows how each of the four categories of GDP spending contributed to overall growth. GDPTable2013.III

The takeaway:

  1. GDP growth in the third quarter was higher than all but one quarter since 2006.
  2. The new data shows greater growth in consumption.