U.S. Growth: An October Surprise Welch Missed

Here’s an October surprise for former General Electric Co. Chief Executive Officer Jack Welch:

“On a scale of one to 10, the economy is at a fairly firm six and may be heading higher,” says Robert Brusca, president of Fact & Opinion Economics and a former New York Fed economist.

As Bloomberg’s Shobhana Chandra and Mike Dorning write today, there must be a conspiracy that runs from auto dealers and real estate agents to both the Fed and the Conference Board  if Welch’s charges of manipulated economic data ahead of the election are true.

The Bloomberg Economic Surprise Index, which compares 38 indicators with analysts’ predictions, shows the economy is improving more than folks had forecast. The index is based on gauges compiled by private businesses and trade groups in addition to government. It confirms U.S. growth is generating jobs in the face of a global slowdown and the looming “fiscal cliff.”

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