Government purchases of goods and services will grow in 2008
According to the Boston-based economic and political forecasting firm Global Insight, government purchases of goods and services in 2008 should reach $2.84 trillion, up from $2.74 trillion in 2007. That’s a 3.64 percent increase, the firm reported in its recent “U.S. Long-Term Economic Outlook.”
What’s more, government purchases are trending upward for the next few years. By 2014, federal, state and local purchases should reach $3.39 trillion, according to the Global Insight analysis. Education, wages and capital investment are included in these totals, which are in current dollars.
Based on the results of an analysis conducted exclusively for GovPro.com by West Chester, Pa.-based Economy.com, per-capita government consumption expenditures and gross investment (one measure of government purchases per person in the United States) will grow $304 between the fourth quarter of 2007 and the fourth quarter of 2008. By the fourth quarter of 2008, government consumption expenditures and gross investment will reach $9,346 per person, up from $9,042 for the fourth quarter of 2007, according to the Econonmy.com analysis.
Government agencies are projected to increase their spending on quite a few activities in 2008, including highway construction and maintenance, public safety building construction and homeland security.
For more information, look for the annual “Keating Report” forecast of government budgets and spending in the upcoming January issue of Government Product News. Also, don’t forget to participate in the GovPro.com Quick Poll, which asks you to compare your agency or department’s 2008 budget to last year’s.