Many economists and experts continue their lauding the achievements made to date that moved us forth from where we had been in the crisis. They say that the worst of the US recession is over now and improved reports in jobs, consumer spending and housing are taken as an index of recovery.
“Economic conditions this Thanksgiving are the best we have seen in three years and we expect an even better climate this time next year,” said Bernard Baumohl, chief global economist at The Economic Outlook Group. “Not only is probability of a double-dip recession receding by the day, but we’re also starting to see signs the economy is on a much stronger footing than anyone would have imagined just a few months ago.”
Some experts think that this year’s Black Friday sales will give the economy the boost needed to continue the spending momentum set by the “cash-for-clunkers” vehicle replacement program.
In October consumer spending increased 0.7% with personal incomes up 0.2% as reported by Bureau of Economic Analysis. Jobless claims filed last week fell by 35,000, dropping below 500,000 for the first time since January and setting a clear downwards trend.
“With job losses slowing, the 90% of the labour force still working must feel somewhat better about their financial prospects,” said Sal Guatieri, senior economist, BMO Capital Markets. “If they can keep spending, that will go a long way to helping the other 10% without jobs find work.”
With the support provided by the US government in the form of $8,000 tax credit for first home buyers housing has improved with new home sales up 6.2% in October. It marked the first annual increase in 47 months, Commerce Department figures showed yesterday.
This week National Retail Federation presented its survey that shows up to 134 million people plan to shop this Friday, Saturday or Sunday, up almost 5% from last year.
Post new comment