Factories started producing more as U.S. companies placed more orders to replenish stockpiles that they slashed during the downturn. Then in the final months of 2010, consumers and businesses showed a bigger appetite to spend, encouraged in part by the improving economy.
The nation's economy added 103,000 jobs in December and the unemployment rate dropped to 9.4 percent last month, its lowest level in 19 months. But the job growth fell short of expectations based on a strengthening economy.
Applications dropped by 34,000, to 388,000, the lowest number since the week of July 12, 2008. The level of applications has either fallen or remained unchanged in five of the past six weeks.
The recovering, yet-still-weak economy puts charity retailer Goodwill in a sweet position. Consumer spending is up, so more old stuff makes its way to thrift stores. At the same time, high unemployment means the bargain hunters are still out in force.
Forecasts are primarily used as a tool to begin, not end, conversations about business and government matters.
The latest data confirm that the economy is improving, even though too few jobs are being created to lower the 9.8 percent unemployment rate.
Many analysts think the economy is growing at a 3.5 percent pace or better mainly because consumers are spending more freely again.
Indiana’s jobless rate dropped for the second month in a row and has decreased four-tenths of a point since hitting 10.2 percent this summer.
All economists know that, at its core, inflation is caused solely by too much money chasing too few goods.
Chief regional economist Jim Diffley of IHS Global Insight says Indiana has grown faster than other manufacturing-heavy Midwestern states.
In November, the economy added just 39,000 net jobs and the unemployment rate rose to 9.8 percent. Many economists predict December will be a stronger month for hiring.
Factory orders declined 0.9 percent in October, the Commerce Department reported Friday. It was the first setback since June and the biggest decline since a 1.8-percent fall in May.
Robert Zoellick, who was set to address the Economic Club of Indiana on Friday, doubts the United States’ debt problems will become as severe as the crisis in Europe and said the U.S. is still a good investment for foreign countries.
Mike Alley, perhaps more than any other banker in the state, is experiencing the pain the economic crisis has wrought on the nation’s financial institutions.
Difficulties adjusting for the Thanksgiving holiday contributed to last week’s spike in new applications, a government analyst said. The four-week moving average of claims, which smooths volatility, fell to 431,000 last week, a two-year low.
Indiana’s unemployment rate in October dipped to 9.9 percent, marking the first time the rate has been below double digits since March.
The U.S. Labor Department said Wednesday that initial claims for jobless aid dropped by 24,000, to a seasonally adjusted 435,000. Many Wall Street economists expected a smaller decrease.
U.S. employers added the most jobs in five months in October, with the education and health care sectors leading the way.
Newly elected members of Congress will get a reminder Friday of the economic challenges they face in January: The jobs report for October is expected to show hiring weak and unemployment still high. The outlook for 2011 isn't much better.
Economic growth will remain sluggish into next year as companies remain hesitant to add jobs, Indiana University economists said Thursday morning during their annual forecast.
