Economic news: Romney says 'discouraging,' Obama camp sees 'growth'
October 26th, 2012
11:25 AM ET
6 years 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)

    Under Republican Party rule we saw the economy shrink drastically.
    Now, Republicans are complaining that the economy is not growing fast enough.

    OBAMA 2012

    October 26, 2012 12:12 pm at 12:12 pm |
  2. Moving in the Right Direction

    A fast growing economy is always built on GREED and is a house built on sand. Romney is thinking about fat cats, not us.

    A solid economy that lasts takes time and is a house built on stone. Obama has a vision of CHANGE is currently in progress. We need to see it through.

    October 26, 2012 12:12 pm at 12:12 pm |
  3. Josh

    It's amazing how the Republican Respondants on here play down any economic good news as much as possible. Things are heading in the right direction. Sure it's sluggish, but the economy is moving up instead of down. There are indications that the economy may take off like a rocket next year, and it would be a damn shame that Pres. Obama has laid the ground work for the economy to improve, then to , (hopefully just hypothetically), lose to Mitt Romney and he and the Republicans take all the credit for it. That would really suck! I guess all you can do is pray, hope, and vote at this point...OBAMA/BIDEN, 2012!

    October 26, 2012 12:12 pm at 12:12 pm |
  4. Marie MD

    Dow almost double and back to where it was in 2007/2008,job market getting better, Obamacare helping seniors and parents and people with pre existing conditions done, Iraq war over, Ledbetter act for women NOT against, DADT, Afghanistan next year, auto industry saved, home prices going up again, bin laden dead!! Among many other things the President has accomplished in spite of the rethugs, with boy toy lyan altar boy atthe helm, putting bumps on the road for the US.

    October 26, 2012 12:12 pm at 12:12 pm |
  5. Jeetu

    If Romney thinks that the numbers would magically chnage if he were to be the POTUS, he shows more ignorance than I think he has. To me it appears that he simply does not understand the gravity of the situation and the economic recession we faced. In some ways this was worse than the great depression of the last century. At that time, it took us more than 12 uears to recover from that. And now Romney think we would recover from this greatest recession in less than four years. It clearly shows his lack of understanding and hence his lack of qualifications to be POTUS. he has no plans of his own and just criticizes President Obama. That will not get us out of this mess.

    Therefore, we need to re-elect Obama to finish his task of making recovery for all Americans, not just the rich ones. Vote democractic in the November elections.

    October 26, 2012 12:14 pm at 12:14 pm |
  6. GI Joe

    Romney still owns 51% of Bain, which means he doesn't run it, but he owns it and makes profits every time they make a dime.

    October 26, 2012 12:14 pm at 12:14 pm |
  7. Bren

    Flipper is misleading America

    Mitt just can't stand that Obama has completely turned the nation around economically!
    You seem to avoided any facts. We need 3% growth to keep up with population growth at least 4% to actually place some the the 23 million under or unemployed back into the workforce. The US is stagnating – this is the slowest recovery if you could call it one in recorded history.

    October 26, 2012 12:16 pm at 12:16 pm |
  8. Bill

    If anyone thinks that a Romney presidency will do better, you are sadly mistaken. No matter, the electoral math strongly favors the president, despite the baloney coming out of the Romney campaign. As of today, Obama is projected to win 294 electroal votes, with a 72.3% chance of winning the general. Bottom line, Obama leads in all but two swing states (VA and CO) and he is tied there. The Obama campaign knows this and has known it for 4 years and have been planning for this very scenario. Romneycan throw all th money around he wants – it does not change the electoral math.

    October 26, 2012 12:17 pm at 12:17 pm |
  9. Moving in the Right Direction

    "But Mitt Romney understands real world economics"

    If that's the case, then WHY isn't Massachusetts supporting their former governor? If he knew how to do it, he would have done it, but he left them with a DEFICIT after coming into office with a surplus. Running Bain, a greedy corporation, is not the same as running a state or country.

    Sorry but you are barking up the wrong tree, if you think Romney is your guy.

    October 26, 2012 12:17 pm at 12:17 pm |
  10. tangledthorns

    Obama has set the bar so low he believes 2% growth is good, if he is re-elected expect the bad economic times to continue.

    October 26, 2012 12:19 pm at 12:19 pm |
  11. Arlene

    As an undecided, who is closer to a decision, am amazed at the "chameleon" that Mitt Romney has become. He is sounding like a clone of President Obama with much of what he is saying....the most recent speech stomping expounding "Change", waiting to hear the song "Change is gonna come". For someone to make such a shift in the last few days (during the last debate specifically) is stunning. I am questioning his sincerity and wonder if there will be another change if he makes it to the White House.

    October 26, 2012 12:26 pm at 12:26 pm |
  12. GOP = Greed Over People!

    Any proof we are improving would be discouraging to the GOP home schooled patriots in "Amercia"!

    October 26, 2012 12:26 pm at 12:26 pm |
  13. marx

    Why not stop sabotaging the economy for the purpose of election Mitt Romney ? Why can't you for once be happy for America? Why do you hope and pray for the down fall of the economy to be elected? You are the greatest economic threat facing America today.

    October 26, 2012 12:28 pm at 12:28 pm |
  14. Mikey

    @Four – Your facts are wrong as usual. First, please find and post the detailed 'plan' Romney has. Sorry, it doesn't exist. Second, conservatives always want to focus on the top statutory tax rate and not the actual taxes paid, which is what really matters. Here's a list of countries with higher tax collections than the United States:

    Argentina, Australia, Austria, Barbados, Belgium, Bolivia, Bosnia, Botswana, Brazin, Bulgaria, Canada, Cuba, Cyprus, Czech Republic, Denmark, Dominica, Estonia, Finland, France, Germany, Greece, Guyana, Hungary, Iceland, Ireland, Israel, Italy, Jamaica, Japan, Kazachstan, Kiribati, South Korea, Latvia..... sorry, I got tired of typing theare are just as many in the second half of the alphabet.

    October 26, 2012 12:30 pm at 12:30 pm |
  15. Bill

    Were you asleep during the eight years of the Bush presidency? If you think those were good economic times, then you really need to do your homework. GOP economic polices are proven failures. Tax ciuts do not create jobs. Unfufunded wars do not create jobs. Runaway, unnecessary, military spending does not cut the deficit. Ever hear of Herbert Hoover?

    October 26, 2012 12:30 pm at 12:30 pm |
  16. paul pine

    am wondering what we think about as citizens of a great nation like america.I have been living in asia for some time now,if you cross check this year all the major economies which of them is doing well then you can make a very fair assesment on OBAMA.I feel recently most of us aint analytical and realistic but rather get played by KOCH and his REPs fantasy team.the chinese scholars will tell you its surprising most amricans will be so dumb to fall for fairytales than reality.all major economies are on the down turn pls america wake up.obama aint no magician,we got to be realistic.I will keep supporting OBAMA nad praying for him.people are so blind folded cant really see.

    October 26, 2012 12:31 pm at 12:31 pm |
  17. steve

    Even if the economy grew at, say, 5%, Mitt would say that isn't fast enough. I wouldn't be surprised if the man has shorted all of his US based stocks in his portfolio just to make a buck. He has zero respect for the office of the President as evidenced in his constant criticism of Obama's performance and exaggeration of truths. Mitt will lose this election and this ugliness will finally stop.

    October 26, 2012 12:34 pm at 12:34 pm |

    Slow and steady wins the race. Obama has done a great job pulling this country out of George Bush and the Republican's recession. We are on the right track with a President we can trust. This country does not need a flip flopper with no character and no core who will be working for the 1%. Get out and vote for Obama.

    October 26, 2012 12:45 pm at 12:45 pm |
  19. BillC

    These Republicans screwed up the economy in the first place! Now they are complaining that it is coming back! Wow, what a team! Look where they took the US economy! The Dems, with a steady hand and brilliant minds, are bringing us back, and the Repubs just contnue to bad-mouth it! Maybe they don't want the economy to come back!
    Mitt Romney is salesman, nothing else! He goes out and takes the temp of the people and adjust his speeches to their conditions! He wants to win so badly, he will take on the temperature of whatever will make him win. He has no core!

    October 26, 2012 12:46 pm at 12:46 pm |
  20. Reggie from LA

    Maybe if you and the GOP had given your secret to success for the Economy, you could run on that as a contribution to our growth, but no. Instead, you've kept your "grand plan" close to vest while the economy has declined (as you say). No, I listen to the economists. Not snake oil salesmen who would let us go under while hiding a "secret little non-specific plan. Be dumb. Vote for Romney. By the way, many priests and preachers have "served" our country via religious service, but many also served in the military.

    October 26, 2012 12:47 pm at 12:47 pm |
  21. Boo

    Did Romney take credit for this yet?

    October 26, 2012 12:52 pm at 12:52 pm |
  22. Phil

    " showed economic growth picked up in the third quarter – boosted by strong consumer spending, an improving housing sector and increased defense spending. " And Obama wants to cut defense spending. His snail speed growth is gonna get even slower to none if he cuts what little bit is helping. Time for a "REAL CHANGE" Romney/Ryan 2012

    October 26, 2012 12:52 pm at 12:52 pm |
  23. Houstonhispanic

    Obama has failed Americans! He has an Empty pamphlet(no specifics) and NO Agenda. I need to feed my family and pay my bills. I don't need him to act like he cares. My family, not my party affilation comes first. I'm voting Romney/Ryan.

    October 26, 2012 12:52 pm at 12:52 pm |
  24. ThinkAgain: All of the GOP's policies are PROVEN FAILURES

    Mittens 'n' Munster like to yammer on about how the government "shouldn't pick winners and losers."

    Newsflash: EVERY decision the government makes picks winners and losers; Mittens 'n' Munster just don't like the ones Democrats make. For example, Mittens 'n' Munster say that the government shouldn't be investing in
    renewable energy – and then in the next breath they talk about how they "love" coal and want to open up the Arctic for oil drilling.

    Obama/Biden 2012 = The only sane choice

    October 26, 2012 12:54 pm at 12:54 pm |
  25. ThinkAgain: All of the GOP's policies are PROVEN FAILURES

    Mittens 'n' Munster like to yammer on about how the government shouldn't be investing in companies, like the $90 billion invested in green energy. They've both been lying about how "half" of those companies (like their favorite, Solyndra) went bankrupt. Here are the FACTS (google it if you don't believe me):

    Government investment:
    63 companies, 5 went bankrupt
    That's an 8% bankruptcy rate (not "half," like Mittens claims)

    Compare that to Romney's Bain Record:
    77 businesses, 22% filed for bankruptcy or closed within 8 years
    AND Bain lost all money invested in 8% of them

    Here's Bain's "Solyndra," a company called Lifelike that made twin dolls using a photo of your child (I know ... creepy):

    In 1996, Bain invested $2 million, including a personal loan by Mittens. Shortly before it went bankrupt, Bain sold its stake in the company for $15,000. THAT'S A 99% LOSS ON INVESTMENT.

    So I'll give Mittens this: when it comes to being better at something, he's better at picking losers than the government.

    Obama/Biden 2012 = The only sane choice

    October 26, 2012 12:55 pm at 12:55 pm |
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