2 Center for American Progress | Economic Snapshot: January 2014
GDP growth in recovery in comparison to previous recoveries
G r o w t h i n d e x ( l a s t q u a r t e r o f r e c e s s i o n = 1 0 0 )
Mar ’61Mar ’75Dec ’82Mar ’91Dec ’01Jun ’09Number of quarters of economic recoveryRecovery after the Great Recession
Source: Authors’ calculations based on Bureau of Economic Analysis,
National Income and Product Accounts
(U.S. Department of Commerce, 2013). Calculations only done for recoveries that have lasted at least four years.
Productivity growth in recovery compared to previous recoveries
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17Average previous recoveriesCurrent economic recovery10%12%6%8%2%0%4%
Source: Authors’ calculations based on productivity growth (output per hour) from Bureau of Labor Statistics,
Current Employment Statistics
(U.S. Department of Labor, 2013).
Improvements to U.S. competitiveness lag behind previous business cycles.
Produciviy growh, measured as he increase in inﬂaion-adjused oupu per hour, is key o increasing living sandards. U.S. produciviy rose by 6.7 percen rom June 2009 o Sepember 2013, he ﬁrs 17 quarers o he economic recovery since he end o he Grea Recession.
Tis compares o an average o 11.4 percen during all previous recoveries o a leas equal lengh.
No previous recovery had lower produciviy growh han he curren one. Produciviy growh is he main driving orce behind he counry’s abiliy o raise living sandards. Weaker produciviy growh han in he pas will make i harder o build a srong middle class, requir-ing policymakers’ atenion o inves in U.S. compeiiveness.3.
The housing market continues to recover from historic lows.
New-home sales amouned o an annual rae o 464,000 in November 2013a 16.6 percen increase rom he 398,000 homes sold in November 2012 bu well below he hisorical average o 698,000 homes sold beore he Grea Recession.
Te median new-home price in November 2013 was $270,900, up rom one year earlier.
Exising-home sales were down by 1.2 percen in November 2013 rom one year earlier, bu he median price or exising homes was up by 9.4 percen dur-ing he same period.
Home sales have o go a lo urher, given ha homeownership in he Unied Saes sood a 65.3 percen in he hird quarer o 2013, down rom 68.2 percen beore he recession. Te curren homeown-ership raes are similar o hose recorded in 1996, well beore he mos recen housing bubble sared.
Alhough he housing-marke recovery sared laer han he wider economic recoveryand sared ou a a record lowhe housing marke has laely conribued a much-needed boos o economic progress. As such, here is sill pleny o room or he housing marke o provide more simulaion o he economy more broadly. Te ﬂedgling housing recovery could gain urher srengh i policymakers suppor economic growh and job creaion a he same ime.