Friday, May 22, 2009

Mixed Signals About U.S. Economic Recovery

U.S. to see growth again in year's second half, CBO says
The U.S. economy will return to growth in the second half of this year, but joblessness will continue to climb well into the second half of 2010, the Congressional Budget Office said. The agency expects unemployment to peak at 10.5%.

Upturn in U.S. economic indicators outpaces predictions
The Conference Board's closely watched index of leading economic indicators surged in April, posting a greater improvement than economists expected. The 1% increase topped an 0.8% rise predicted by economists surveyed by Thomson Reuters. Ken Goldstein, an economist with The Conference Board, said the data raise prospects for the U.S. economy to return to growth in the second half of this year.

Fed official anticipates "rather slow recovery" for U.S.
When the U.S. economy shifts back in the direction of growth, it will be slowed down by a weak employment market, consumers who are limiting spending to boost savings and banks that are unloading problem assets, said Eric Rosengren, president of the Federal Reserve Bank of Boston. "My best judgment is that a rather slow recovery is likely," he said.

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