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Category: Money

Feeble Economy Shows Smidgen Strength

Written on September 05, 2010 by Japhet Writ

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There is indeed silver lining in every cloud. The US economy shows a little light as their economy starts to rise -- slowly. But, hey, it's better to have a little increase than nothing.

The weak exhibits mild positive results on jobs, store sales and housing. Though the growth remains anemic, figures on unemployment claims, store sales and home buying contracts are treading the right direction. According to , the unemployment aid claims fell by 6,000. A forecast from the department states that private business added a net total of 41,000 jobs last month. Growth will continue in a weak pace making the unemployment rate to top 10 percent by next year. One positive sign though, output per hour worked fell in its largest amount while labor costs rose. It is followed by rapid increases in efficiency.

At the same time, Retailers reported strong sales in August, as compared to last year, with index raised to 3.2 percent. In the weakest area of the economy, housing provides mild optimism. Though remained well below levels last year, the number of people who signed contracts to buy homes rose in July. Home sales are at the lowest level for over a decade, even though mortgage rates plummet. In addition to these, factory orders went slightly up last July after two months of downfall. The growth in the industrial sector for the month of August eased concerns about faltering manufactures. ’ industrial average posted modest gains of 0.5 percent, while the ’s index rose to 0.9 percent.

As the government’s stimulus package fades, the pace of has considerably slowed. Without more jobs, consumers will tend to spend more cautiously. As a result, it will be harder for the economy to go full steam ahead. The nation’s gross domestic product, though it grew to 3.7 percent in the first quarter, dramatically dropped to 1.6 percent in the April-to-June period. Economists at the estimates the economic growth of only 1.8 percent pace for 2011.

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