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CNN Live At Daybreak

On the Money: Economic Upswing

Aired November 26, 2003 - 06:16   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Let's focus on finances right now. President Bush got a boost from some new economic numbers.
CNN's Jennifer Coggiola is 'On the Money' in Washington. This may mean very good things for the holiday shopping season -- Jennifer.

JENNIFER COGGIOLA, CNN CORRESPONDENT: Let's hope so. Good morning, Carol.

Well we knew things could be good. We didn't know they could be this good. Yesterday's third quarter figure showed that the American economy is growing faster than it has in nearly 20 years. And for the president in Nevada yesterday, that fits pretty nicely in his domestic agenda.

(BEGIN VIDEOTAPE)

JENNIFER COGGIOLA, CNN CORRESPONDENT (voice-over): It was a good day for President Bush yesterday.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The American economy is strong and it is getting stronger.

COGGIOLA: And an even better day for the American economic outlook.

BUSH: The third quarter figures were just revised upward to 8.2 percent, the fastest pace in nearly 20 years.

(APPLAUSE)

COGGIOLA: Proof the nation's economic climate may be shaking off those cobwebs. Tuesday's GDP numbers, considered the broadest measure of the country's economic health, are much better than analysts had anticipated. Corporate profits also rose at a nearly 11 percent annual rate, a key factor in rehiring. And consumer's confidence, which accounts for two-thirds of U.S. economic activity, is at its highest level in more than a year. Again, way beyond expectations.

So what does that mean going into the busiest holiday shopping season?

LEE PRICE, ECONOMIC POLICY INSTITUTE: We will have better consumption than in the last couple of years, but it still isn't as strong as it ought to be.

COGGIOLA: For a president who has been widely criticized by the Democrats for the more than two million jobs lost since he took office, these latest figures could mean a boost heading into an election year.

SCOTT REED, GDP STRATEGIST: This is about hitting stride at the right time. And by next year, most economists say there will be real job creation, just in time for the presidential election.

(END VIDEOTAPE)

COGGIOLA: And these numbers do show a rosy outlook overall economically. But looking specifically at spending over the holiday season, a survey by a consumer advocacy group shows that only 34 percent of households actually plan to spend less this year and 16 percent plan to spend more -- Carol.

COSTELLO: All right. Jennifer Coggiola reporting live from D.C. this morning.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired November 26, 2003 - 06:16   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Let's focus on finances right now. President Bush got a boost from some new economic numbers.
CNN's Jennifer Coggiola is 'On the Money' in Washington. This may mean very good things for the holiday shopping season -- Jennifer.

JENNIFER COGGIOLA, CNN CORRESPONDENT: Let's hope so. Good morning, Carol.

Well we knew things could be good. We didn't know they could be this good. Yesterday's third quarter figure showed that the American economy is growing faster than it has in nearly 20 years. And for the president in Nevada yesterday, that fits pretty nicely in his domestic agenda.

(BEGIN VIDEOTAPE)

JENNIFER COGGIOLA, CNN CORRESPONDENT (voice-over): It was a good day for President Bush yesterday.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The American economy is strong and it is getting stronger.

COGGIOLA: And an even better day for the American economic outlook.

BUSH: The third quarter figures were just revised upward to 8.2 percent, the fastest pace in nearly 20 years.

(APPLAUSE)

COGGIOLA: Proof the nation's economic climate may be shaking off those cobwebs. Tuesday's GDP numbers, considered the broadest measure of the country's economic health, are much better than analysts had anticipated. Corporate profits also rose at a nearly 11 percent annual rate, a key factor in rehiring. And consumer's confidence, which accounts for two-thirds of U.S. economic activity, is at its highest level in more than a year. Again, way beyond expectations.

So what does that mean going into the busiest holiday shopping season?

LEE PRICE, ECONOMIC POLICY INSTITUTE: We will have better consumption than in the last couple of years, but it still isn't as strong as it ought to be.

COGGIOLA: For a president who has been widely criticized by the Democrats for the more than two million jobs lost since he took office, these latest figures could mean a boost heading into an election year.

SCOTT REED, GDP STRATEGIST: This is about hitting stride at the right time. And by next year, most economists say there will be real job creation, just in time for the presidential election.

(END VIDEOTAPE)

COGGIOLA: And these numbers do show a rosy outlook overall economically. But looking specifically at spending over the holiday season, a survey by a consumer advocacy group shows that only 34 percent of households actually plan to spend less this year and 16 percent plan to spend more -- Carol.

COSTELLO: All right. Jennifer Coggiola reporting live from D.C. this morning.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com