PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Strong Economic Growth Can Be Sustained with BOLD Tax Reform: GDP Q3 Registers 3.0%

By at 27 October, 2017, 10:14 am

NEWS

“The GDP data reaffirms the unbroken confidence that small business owners and entrepreneurs have about the economy, the business environment and their prospects for growth.”

FOR IMMEDIATE RELEASE

Washington, D.C. – The Bureau of Economic Analysis reported that the economy grew at 3.0 percent in the third quarter of 2018. The Small Business & Entrepreneurship Council (SBE Council) observed that stronger growth is being driven by high confidence among businesses and consumers and that continued progress on key policy issues – such as tax reform and regulatory improvements – will drive higher levels of investment, entrepreneurship, quality job and wage growth, which will produce the sustainable dynamism our economy needs to improve the financial condition and opportunity for all Americans.

“The GDP data reaffirms the unbroken confidence that small business owners and entrepreneurs have about the economy, the business environment and their prospects for future growth. Positive, pro-entrepreneur policies are making a huge difference in their confidence and the performance of the economy. They are investing more, and consumers are following that lead and optimism by spending. Tax reform is key to fueling this confidence and growth into 2018, as it will put more resources and capital into the hands of entrepreneurs for investment, which will drive the strong and sustainable growth that has been missing for the past decade,” said SBE Council president & CEO Karen Kerrigan.

SBE Council chief economist Raymond J. Keating added that this traction and sustainability is starting to occur: “We’ve experienced two straight quarters of at least three percent growth, which has not happened since the second and third quarters of 2014. A pro-growth tax reform package signed by President Trump this year will sustain solid growth in 2018. ”

Investment in equipment and intellectual property products grew at solid rates. Private investment is critical for growth now and into the future. Keating observed that some of the data needs to be watched closely. For example, the trade numbers – slow export growth and a decline in imports – were disappointing but can be reversed. As for the private investment numbers, residential investment experienced a big drop for the second consecutive quarter, along with a decline in nonresidential structures. In terms of the impact of the hurricanes, this is still being assessed, but the GDP growth estimate defied what experts were predicting.

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org 
703-242-5840

Raymond Keating, Chief Economist, rkeating@sbecouncil.org631-909-1122

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

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