Economic news: Romney says 'discouraging,' Obama camp sees 'growth'
October 26th, 2012
11:25 AM ET
1 year ago

Economic news: Romney says 'discouraging,' Obama camp sees 'growth'

(CNN) – Republican nominee Mitt Romney said Friday's third-quarter economic numbers indicate sluggish growth, falling short of what President Barack Obama's administration had anticipated when the president took office in 2009.

"Today, we received the latest round of discouraging economic news: Last quarter, our economy grew at only two percent, less than half the 4.3% rate the White House projected after passing the stimulus bill," said Romney in a statement issued Friday after the Bureau of Economic Analysis released an advance estimate of the economy's growth in the third quarter.

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Gross domestic product, the broadest measure of the nation's economic health, however, showed economic growth picked up in the third quarter - boosted by strong consumer spending, an improving housing sector and increased defense spending. The GDP grew at an annual rate of 2% from July to September, the Commerce Department said Friday, faster than the 1.3% in the second quarter.

Economists surveyed by CNNMoney had predicted a 1.7% growth rate for the third quarter.

"Slow economic growth means slow job growth and declining take-home pay," Romney said in the statement. "This is what four years of President Obama's policies have produced. Americans are ready for change - for growth, for jobs, for higher take-home pay. Paul Ryan and I will deliver it."

Romney's statement comes hours before he will deliver an economic speech in Ames, Iowa.

The Obama campaign said the Commerce Department's GDP growth report shows signs of recovery whereas Romney's proposed economic plan would only slow the recovery and place the burden on the middle class.

"While we have more work to do, today's GDP growth report, showing the 13th straight quarter of growth, is more evidence that our economy continues to come back from the worst recession since the Great Depression under President Obama's leadership," said Obama campaign spokesman Adam Fetcher, pointing to businesses adding 5.2 million jobs over two and half years and the lowest unemployment levels since when Obama took office in 2009.

"Romney's hiding the truth because he knows his plans would punish the middle class and take us back to the same failed policies that crashed the economy and created record job losses in the first place," said Fetcher. "There's a clear economic choice in this election, and the American people want to move forward, not back."

Friday's GDP report also showed residential construction accelerated at a 14% pace, an indication that housing sector may have started to recover. The impact, however, is minor because housing makes up less than 3% of the entire U.S. economy.

Federal defense spending also boosted the economy, growing at a 13% annual rate after shrinking in the three prior quarters.

Meanwhile, businesses were a bit more cautious and slowed their spending. Weak exports also weighed on growth.

–CNN's Dana Davidsen and CNNMoney's Annalyn Censky contributed to this report.


Filed under: Mitt Romney • President Obama
soundoff (69 Responses)
  1. Wire Palladin, S. F

    Mittens should have been around in 2009, when Obama inherited a destroyed economy with a negative 8 GDP.

    October 26, 2012 11:32 am at 11:32 am |
  2. Thomas

    Look around the world , the US economy is doing better then most , we are recovering from two wars and a failed GW Bush
    economic policy .
    Where was Mitt Romney back in 07 or 08 on the economy ? He never mentioned the impending economic crash or possible recession .

    Did he ?

    Romney = GW Bush

    October 26, 2012 11:32 am at 11:32 am |
  3. nvorr

    It's 'discouraging" for Romney, because he can't continue to deny we're moving inthe right direction.

    Obama/Biden 2012!

    October 26, 2012 11:35 am at 11:35 am |
  4. Four and The Door

    "While we have more work to do, today's GDP growth report, showing the 13th straight quarter of growth, is more evidence that our economy continues to come back from the worst recession since the Great Depression under President Obama's leadership," said Obama campaign spokesman Adam Fetcher
    ________________________________________________________________________________________________
    Taking a victory lap for 2% annual growth is typical Obama. Americans across the country continue to see ineffective economic policy holding back recovery. His plan is not working. That's clear. We do not need to spend another $5 trillion and 4 years to be convinced. The data is in. Americans are hurting. We can do better. Romney/ Ryan 2012.

    October 26, 2012 11:36 am at 11:36 am |
  5. Jill

    13 straight quarter of growth! Only Rmoney would say that is disappointing.

    October 26, 2012 11:37 am at 11:37 am |
  6. sayer

    The repubs are in denial. Big time! This is good news and they will NEVER give Obama credit for that.

    October 26, 2012 11:37 am at 11:37 am |
  7. 4moreyears

    Instead of saying we are moving in a right direction once again the Repubs are downgrading the growth the economy did have. Just don't want to see the economy succeed. SMH I have never seen a bunch of people so against the American people before just bc they are not calling the shots. Its Sad and Scary.

    October 26, 2012 11:38 am at 11:38 am |
  8. Beverly - NYC

    Wow Mitt you're such a Debbie downer, how much $ have you made with slow growing economy? On your tax return it appears your personal economy is doing fine. If I were dating a liar like Mitt Romney I would have dumped him already.

    October 26, 2012 11:38 am at 11:38 am |
  9. Low key

    Dang the sky is falling the sky is falling. How can we vote for a man that sees nothing but negative who gives not one bit of hope untill he is president. They were not saying this when Bush was running and Romeny wasnt worried about the economy until he ran for POTUS he was to busy making money so he didnt care the economy was not hurting him. WOW.

    October 26, 2012 11:39 am at 11:39 am |
  10. ThinkAgain: All of the GOP's policies are PROVEN FAILURES

    President Obama: 31 straight months of private sector job growth, housing market rebounding, Dow over 13,000, GM alive (along with the 1+ million supply chain jobs), avoidance of a Great Depression.

    Mittens: Failed trickle-down policies, smoke-and-mirrors "plan" with no specifics on which tax loopholes he'll close to make up for the $5 trillion tax break for the rich he wants, just the same-old, same-old junk.

    Obama/Biden 2012 = The only sane choice

    October 26, 2012 11:39 am at 11:39 am |
  11. David Moolten

    Now, more than ever the votes of fair minded people are essential, and that vote should be for Obama. So go vote. Vote for justice, accountability, a man who says what he means and does what he says. Vote for what is decent and right for America, all of America. Vote for the man who will stand up for women's rights, for equal rights, for equal pay, and the chance for a good life for all Americans, not just the wealthy. Vote for the future, for technology and education and a decent world for our children. If you think deeply and unselfishly you will see Obama is not only the better choice, but that he is truly special. You likely won't see the likes of a statesman of Obama's caliber again in your lifetime. In their own time most of the great presidents from both parties have been tested by events, and many faced a challenging path to election– Lincoln, Jefferson, FDR, Kennedy. Obama will be compared by history to such men. Look at his steady hand in foreign policy. Getting the job done with Bin Laden. Ending wars successfully rather than starting them recklessly. Effective and respected when working with world leaders. Look at his courage in taking the difficult path with healthcare—so badly in need of change. Look at his foresight in moving America towards clean energy, and away from dependency on foreign oil, and environmental damage from fossil fuels. Take the long view, the unselfish view, the righteous and patriotic view. Vote for Obama.

    October 26, 2012 11:42 am at 11:42 am |
  12. California Gary

    In Romneyworld, gain is loss, good is bad, up is down, and positive is negative. There is no such thing as a trend, and success is actually failure. And he wants us to hand him the economic keys to our country? I think not.

    October 26, 2012 11:42 am at 11:42 am |
  13. ghostriter

    Of course it's bad news. It has to be for Mitt to have a shot.

    It's funny that growth that is better than expected and continued growth for over the last few years is a bad thing. This is why republicans are in such a pickle. They have to make everything so dire and so drastic. I think they missed their calling and should have been thespians.

    October 26, 2012 11:44 am at 11:44 am |
  14. BlkPwr817

    OK....let me get this straight. The economy is improving(13th straight quarter of growth) housing sector is improving(residential construction up 14%) & 40+ months of job growth from losing 800,000+ a month when Obama took office(5.2 million new jobs)...And this is discouraging new? Really? Romney himself said economy grew, but that's not good enough? Somehow he has some magical beans that will make grow faster I guess. Romney is quick to say he can do it better but can never tell us how"Just take my word for it" Sorry Mitt, that's not going to work. This isn't Bain, this is the United States of America...

    Obama 2012!

    October 26, 2012 11:45 am at 11:45 am |
  15. Cassia

    We should vote for who we want.

    October 26, 2012 11:46 am at 11:46 am |
  16. Malory Archer

    Maybe it's just me, but IMO gaining 150,000 jobs a month is 950,000 times better than losing 800,000 jobs a month.

    October 26, 2012 11:47 am at 11:47 am |
  17. Al-NY,NY

    The GOP hopes the news is bad. They'd rather have people struggle (while it does improve slowly) and take advantage of that than have good news. It's their intention to keep things down so they can blame Obama

    October 26, 2012 11:48 am at 11:48 am |
  18. TheVoice2

    The economy would be doing much better had the Great Obstructionist Party passed the JOBS bills. Their pledge to Norvquist over the middle class tells all.

    R= Republican
    R= Ryan
    R= Romney
    R= Reverse

    Lets move FORWARD with Obama/Biden!!

    October 26, 2012 11:50 am at 11:50 am |
  19. jinx88

    Mittens keep pulling malarkey out of his you know what. What is discouraging is the Repukes are constantly being negative everytime some good news comes out. They are clearly pathetic people. Who in their right mind prays the market stays bad? Pathetic

    October 26, 2012 11:52 am at 11:52 am |
  20. Maxx

    Sure Mr. 47th in job creation who added $5 Billion dollars to MA long term debt, of course you know how the economy works. Gordon Gecko without the class :)

    October 26, 2012 11:55 am at 11:55 am |
  21. Flipper is misleading America

    Mitt just can't stand that Obama has completely turned the nation around economically!

    Mitt repeats the same broken record of more military, tax cuts for the rich, shrinking government, lowering debt, and lowering deficits...but NO GOP president has decreased the size of government, reduced the deficit, or decreased our debt!!! – and yes, that's including Reagan who TRIPPLED our debt.

    Flipper is feeding America a line of BS. His math obviously doen not work or he'd explain it. He'll lower taxes for the rich and possibly increase military spending. He will EXLODE our deficits and the debt, just as Reagan did!

    Let's not repeat failed economic policy based in fantasyland!

    October 26, 2012 11:58 am at 11:58 am |
  22. JM

    Obama has got to go! This LIES and DENIES tour is such a scam, especially the Libya cover up. Your right Sam Jackson, wake the f up America! See this President for what he is a False prophet. ROMNEY/RYAN 2012

    October 26, 2012 12:02 pm at 12:02 pm |
  23. Mikey

    It's discouraging for Romney because it disproves the line he's been pushing that economic activity is decelerating. You have to wonder about a segment of the population that is sad when we get good news and overjoyed about bad news. This GDP number is not the only thing.

    We've had 34 consecutive months of private sector job growth – more than 5 million jobs
    The unemployment rate is down 2% over the past 22 months and 1/2% down over the past 2 months alone
    Consumer spending and retail sales are up
    Housing starts, home sales, and real estate values are up
    Consumer confidence is up and the projections for holiday spending are optimistic

    October 26, 2012 12:03 pm at 12:03 pm |
  24. Four and The Door

    BlkPwr817
    Romney himself said economy grew, but that's not good enough? Somehow he has some magical beans that will make grow faster I guess.
    _____________________________________________________________________________________________
    Fundamental Economics may seem like magic beans because it does work. Under Obama high government spending, high national debt and taxing American businesses the highest of any developed nation gives us exactly what we have now. High unemployment and increasing poverty. But Mitt Romney understands real world economics. His plan is based on real world economics, not a political agenda. Yes it will work. Americans deserve better than what they have now.

    October 26, 2012 12:06 pm at 12:06 pm |
  25. palin

    hmm I am an American living in china and I can tell you even the chinese economy is suffering some digits.for mitt he would everything to win an election,its very scary...am for once feeling most amaericans are letting the nation down,people should be more circumspective and realistic.even the chinese economist are shockedwhy we want to kick obama out,who comes to clean up such mess and the economy recovering from that harsh failed rep politics most citizens would be taken for granted.the world believe we are eductated citizenry and a role model to the world,why this absurd way of thinking,OBAMA MOST DEF.HAVE MY VOTE.WE SHOULD WAKE UP FROM THIS KOCH BROTHERS AND REP.FANTASY

    October 26, 2012 12:09 pm at 12:09 pm |
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