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Dec. 23, 2014

Good News: Low Gas Prices and GDP Growth

As Americans celebrate Christmas this year, there are two bits of good news worth celebrating. First, especially for those who travel for the holidays, gas is cheaper. The U.S. Energy Information Administration reports, “The average U.S. household is expected to spend about $550 less on gasoline in 2015 compared with 2014, as annual motor fuel expenditures are on track to fall to their lowest level in 11 years. … Household gasoline costs are forecast to average $1,962 next year … [which means] motor fuel expenditures (gasoline and motor oil) in 2015 would be below $2,000 for the first time since 2009.” Second, good news for the larger economy. MarketWatch reports, “Gross domestic product — the value of all goods and services produced by the U.S. — grew at a real 5.0% annual rate in the third quarter, the Commerce Department said Tuesday. That’s up from a prior reading of 3.9% and an initial estimate of 3.5%. This is the fastest pace of growth since the third quarter of 2003.” So take heart, America, there are some bright spots out there.

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