Despite fighting the War on Terror, both at home and abroad, America's economy is clearly improving. Recent statistics show that output is growing and wages are increasing. We can further be encouraged by the emergence of more positive economic indicators, and more specifically, the stock market. Although many factors have contributed to the economy's turn-around, a major one is the introduction and passage of the President's "Jobs and Growth Tax Relief Reconciliation Act of 2003."

In fact, since the House Committee on Ways and Means began public hearings on this pro-growth legislation on March 11, 2003, the stock market has grown by an average of 24 percent. From March 11 through mid-July, the Dow was up 18 percent, the NASDAQ was up 33 percent, and the S&P 500 was up 20 percent. Every milestone in the legislative process led to more increases, resulting in the creation of $1.9 trillion in equity value over the past few months.

But even as the economy is clearly turning around and our country has much to be encouraged about, critics are attempting to damper our enthusiasm by pointing out that the job market is weak. While this argument could be made, we should be patient and keep in mind that the labor market has always lagged as an economic indicator. So even though we will not be satisfied until everyone who wants a job has a job, we can be confident that positive economic indicators will translate into job creation.

Recent Key Economic Indicators

• Stock market is up 24 percent in the last four months. This strong boom in equity prices indicates investors' confidence in the economy.
• Economists' consensus forecast for the remainder of 2003 is 3.7 percent real growth. Such a rapid rate of growth will result in significant hiring to meet increased demand.
• The Conference Board's survey of consumer confidence shows that consumers are increasingly confident about the economic outlook. The index was 95.9 in June.
• The University of Michigan Consumer Sentiment Survey increased in June to 90.3 as is now well above the March level of 77.6. In addition, consumers' views of the present economic situation jumped strongly.
• Oil prices have dropped about $8/barrel since February to about $30/barrel.
• Mortgage rates recently reached a historically low level. Millions of households have consolidated debt, reduced mortgage payments and funded home improvements.
• Despite the ongoing War on Terrorism, productivity of American workers has grown at a 5 percent annual rate since October 2001.
  
  Economic Indicator source: House Committee on Ways and Means