President Obama’s top economic adviser said Thursday that reduced oil drilling, weak demand for U.S. exports and political “brinksmanship” by congressional Republicans all contributed to anemic economic growth in the third quarter.
“Over the past year, slowing global demand has been a headwind for the U.S. economy, and unnecessary austerity and fiscal brinkmanship have posed unnecessary risks for consumer spending and business investment,” said Jason Furman, chairman of the White House council of economic advisers.
U.S. economic growth slowed to a rate of 1.5 percent in the third quarter, the Commerce Department said Thursday, down from 3.9 percent in the second quarter.
Mr. Furman said reduced oil drilling “continued to weigh on business investment, subtracting from overall growth.” The number of rigs drilling in the U.S. dropped to a five-year low this month, mainly in response to a global oil glut.
The White House said the two-year budget agreement reached with Congress this week, which will raise spending well beyond caps imposed in 2011, should help the economy grow.
“That’s why this week’s budget agreement is a particularly important step—adding an estimated 340,000 jobs in 2016, reducing uncertainty, and enabling productivity-enhancing investments,” Mr. Furman said.
He said the administration also wants to work with Congress on “increasing investments in infrastructure, reauthorizing the Export-Import Bank, and opening new markets for our exporters through high-standards free-trade agreements like the Trans-Pacific Partnership.”
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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