'Tentative' Signs Point to Healing US Economy

But changes on paper may take time to hit pockets

By Matt Cantor, Newser Staff

Posted Mar 28, 2009 8:34 AM CDT

(Newser) – Next month, the US recession is set to become the longest since the Great Depression, but the Wall Street Journal, in the first up-beat prediction in months, musters “tentative” signs that things could be turning around. Consumer spending and sentiment rose in February, the housing market is looking more stable, and hopes are rising for manufacturing. But even if the recession ends soon on paper, we’re likely to feel its effects long afterward, the Journal notes.

“Most Americans will be hard-pressed to tell the difference between a recession and recovery the next 12 months,” notes one economist. Even if economic growth reaches 3% by late next year, unemployment could rise to 10.5% from the current 8.1%, says another. But “we've passed the period where every indicator is plummeting, and that's good news," he notes. "We may not be exactly at the turning point, but we're getting pretty close to it."

Consumer sentiment has risen, a Reuters/University of Michigan survey found. (AP Photo/Charlie Neibergall)

Consumer spending rose in February. (AP Photo/Paul Sakuma)

Customers shop in New York. (AP Photo/Mark Lennihan)

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COMMENTS

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Showing 3 of 3 comments

justme

Mar 29, 2009 12:20 PM CDT

Does Barack deserve credit? Most of his economic changes haven't even been implemented yet. Most of the money working in the economy right now was released (badly) under Bush. We can only hope that the Obama billions don't flood the system and drive us into inflation and spiraling debt.

Doctor-Zaius

Mar 29, 2009 4:56 AM CDT

Deflation was the greater villain. Yes we have to worry about inflation but to stave off deflation it was the right move.

AdaptAndOvercome

Mar 28, 2009 10:25 AM CDT

So, will the GOP give Barack credit? Definitely not. One thing is for sure...they can't take any of it for themselves. They were and are the PARTY OF NO, no help for the unemployed, no help for those in need of assistance, no for those in need of health coverage. America voted for the right man to run this country...now they need to get rid of the excess baggage that doesn't offer their people anything...make the party of No...a party no more.

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'Tentative' Signs Point to Healing US Economy

But changes on paper may take time to hit pockets

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But changes on paper may take time to hit pockets

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housing market • consumer confidence • recession • recovery • consumer spending

MOST POPULAR STORIES

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More Newser Stories

Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months

Secret to Recovery: Optimism

Obama, Boehner must promote American confidence

Chill Out: It's a Recession, Not the Apocalypse

London's mayor has some advice for the queen: Buy a dress

Wary Consumers Spell Trouble for Retailers

71% miss projections, worst showing since September of 2000

Home Prices Fall Again; Rate of Decline Sets Record

Consumer confidence numbers offer ray of hope

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Newser By Users

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