WASHINGTON (voa) – New U.S. government reports indicate that poverty is rising in the United States even as the economy shows signs of growth.
A Census Bureau report released Friday says an additional 1.7 million people fell into poverty last year. That means nearly 34.6 million people are living in poverty.
The report also says that between 2001 and 2002, the median household income dropped by about one percent to $42.409 after taking inflation into account.
This marked the second straight year of rising poverty and declining income as the U.S. economy emerged from a recession which began in March 2001 and ended several months later.
A just-released University of Michigan survey shows American consumer confidence declining by one point six per cent amid worries about unemployment. Businesses watch these ratings to predict how likely consumers are to buy goods and services.
White House spokesman Scott McClennan told reporters in Washington Friday that the increase in poverty is a result of a sluggish economy but that things are moving in the right direction. Mr. McClellan said the government has worked on a number of fronts to create an environment for job growth.
In a related development, new figures show that the U.S. gross domestic product unexpectedly grew at a rate of 3.3 percent in the second quarter. Analysts say this is two-tenths of a percent faster than predicted and could indicate the nation is beginning to recover from recession.
