New Signs Economy Is Recovering

After more than a year of continuing bad news, latest figures show America's economy is rebounding.  Growth climbed at its fastest rate since the beginning of 2006, according to figures released today by the Commerce Department.  What signs have _you_ seen that our economy is on the upswing?

Retail sales last month rose nearly three percent, far exceeding expectations and offering hope that the long-awaited recovery has begun in earnest.

And Federal Reserve chairman Ben Bernanke told a Washington forum today that America's recession "is very likely over at this point."

Speaking at Washington's prestigious Brookings Institution this morning, Mr. Bernanke observed that:

  "That's one reason why, even though from a technical perspective, the recession is very likely over at this point, it's still going to feel like a very weak economy for some time."
 
  "As many people will still find their job security and employment status is not what they wish it was."
 
Chairman Bernanke went on to observe that:

  "Even though from a technical perspective, the recession is very likely over at this point, it's still going to feel like a very weak economy for some time as many people will still find that their job security and their employment status is not what they wish it was."  

Similarly, President Barack Obama said in a televised address this morning that he also saw signs the economy was recovering.

Among the factors contributing to the rise in our nation's economic prospects was the Cash for Clunkers program.  It spurred not only auto sales but also helped drive other parts of the sagging economy, in the view of some analysts.

"With broad-based gains, it's hard to say any sector is a standout, which is great," observed one Wells Fargo analyst quoted by CNNMoney this morning.  "We had promising core numbers, but we don't want to call a trend out of one month."

And it wasn't only the auto market which received a boost. 

Non-auto sales, which had fallen 0.6 percent in July, rose 1.1 percent last month, boosting hopes that Autumn manufacturing might continue to benefit from the boost.

What remains to be seen is whether these increases will be sustained through the upcoming holiday and year-end shopping seasons.

What do _you_ think?

[Views expressed are those of the author(s) and do not necessarily reflect those of CompuServe, Netscape, any government, agency, or news organization.]

China's state-run Xinhua offered this graphic illustration of this morning's news:

Sales at US retailers rose at their fastest pace in three-and-half years in August as government-sponsored auto incentives buoyed demand for motor vehicles, according to data on Tuesday that also showed strong sales outside the auto sector. [Agencies]

Please... Take a look around and use your head.    Retail sales were up because everyone who has kids was buying school supplies clothes and dorm supplies.  and...   I'm sure if you let it play out a bit you will find that the "Cash for Clunkers" program will end up hurting the economy for a couple of good reasons.   1  you have just removed a few million perfectly good cars from the used car market... I'm sure those people who cant afford to by a new car are very happy.   2   The clunkers deal also takes those cars completely out of the system, so  NO used car parts revenue   NO more oil changes   WOW no more new tires ( sorry Goodyear )   3   it does do one thing.   a new car generally is more costly to insure .    

       Lets face it !  The Obama stimulus pay back is not doing any good for the economy and if Obama has his way with healthcare I'll have to pay for FREE  Housing (thank you hud) FREE  Food ( wik food stamps) and now FREE Medical Coverage  for every ILLEGAL that gets into the Country...   No Thanks!!   I'm Done paying for freebies

    Thanks for reading.

What do _you_ think? <<

John and all,

I think I am literally 'feeling' my way out of this recession just like I felt increasingly depressed in the October - December, 2008 period.  It is difficult to pin this down in words, but is rather more of just the way world events make me feel these days.

Bruce from Central New Jersey

Anyone besides me looking into the sky to see the sign of a miracle?

The miracle you just might get is a recovery driven by the fantastic creative and productive power of a free-market economy despite the Obama-led efforts to socialize it.

First I don't know what Illegals, paying for so called Freebies or Obama bashing has to do with the question.

Right. You don't seem to know at all.

Maybe you are too young to "have been there done that" before, but I am not.

Probably. I'm only in my seventies and have been investing, both in public venues and private businesses for a half century or more.

 Do any of the "reality challenged" really believe the DOW will not hit 10K in the next few months?

I expect it to hit 10K, and go above, but in a little longer time than just a few months. It will do this because of the ability of our economy to recover and move forward despite the domestic policies of this anti-market administration.