The Business Owner Blog

Lots of Economic Fuel Still in the Tank

April 22nd, 2011

Business owners and investors, our broader economy is definitely growing again. The most widely accepted and used gauge of overall economic activity in the United States—gross domestic product (GDP)—pegs growth of 2.6 percent (annualized rate) in the third quarter of 2010 and 3.1 percent in the fourth quarter. And one should keep in mind that residential construction – a significant contributor to overall GDP – remains moribund. According to an analysis of U.S. Census Bureau data performed by the managing editor of The Business Owner Journal, residential construction in 2010 was 72percent below what it was in 2005 and basically unchanged from 2009. In fact, only 587,000 houses were built in the United States in 2010; 554,000 in 2009; and 905,000 in 2008. In no other year since 1950 were housing starts below 1 million units!

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