Recovery Act added 2.7% to 3rd quarter GDP

Today the White House issued this press release:

WASHINGTON, DC – The Council of Economic Advisers today released its latest quarterly report on the economic impact of the Recovery Act. The report shows that the Act played a key role in changing the trajectory of the economy. Specifically, the Recovery Act added 2.7 percent to third quarter GDP growth and by some measures has exceeded the original goal of creating or saving 3.5 million jobs by the end of 2010.

The report also shows that the third quarter was the biggest yet for public investment spending, with more than $33 billion outlaid for clean energy, transportation and other infrastructure projects. According to CEA’s analysis, public investment spending was responsible for over 1 million jobs nationwide through the third quarter of 2010.

This is the fifth quarterly report the Council of Economic Advisers has submitted to Congress on the employment and economic impact of the Recovery Act. The report can be viewed in full HERE.


The Council of Economic Advisers Fifth Quarterly Report on the Economic Impact of the American Recovery and Reinvestment Act of 2009

Key Findings

• As of the third quarter of 2010, the Recovery Act has raised employment by 2.7 to 3.7 million jobs.
• The Recovery Act has raised the level of GDP as of the second quarter of 2010 by 2.7 percent.
• Public investment spending increased significantly in the third quarter with more than $33 billion paid out to support projects in areas like health IT, building construction and transportation infrastructure.
• Public investment spending was responsible for more than 1 million jobs in the third quarter.
• Clean energy investments were responsible for nearly a quarter of the 1 million public investment jobs – or 224,500 clean energy jobs.
• Less than $20 billion of discretionary program funding remains “unobligated” – and the majority of those funds have already been awarded.
• Eight states – California, Florida, Illinois, Michigan, New York, Ohio, Pennsylvania and Texas – have now seen an impact of over 100,000 Recovery Act jobs.