Business

Optimism spreads in the US about the post-recession recovery
by Zuzana Zelenakova

US sector reports regarding construction, manufacturing and home sales released on Monday ignited new hopes in people about the recovery getting more and more concrete shape. It seems the businesses are no longer tightening their belts so strictly and are willing to spend money on equipment and software. According to the government last week´s report US economy grew 1.1 percent. The GDP report showed that the value of American goods and services rose in the third quarter for the first time in a year. It is important now that the companies spend their money since consumers are still quite reluctant, or better to say cautious to do so. "It clearly looks like we are seei! ng a turnaround in the manufacturing sector," said David Wyss, economist at Standard & Poor´s, commenting on the fact that the ISM (Institute for Supply Management) index that reflects the manufacturing activity rose to 55.7 in October, which is the highest levels in the last three years. However, economists warn that this boost in manufacturing will come to an end within several months as it did in the post-recession recoveries in the past. When it comes to contracts to buy homes, previously occupied, the National Association of Realtors reported the 6.1 percent rise in September. "We think this recovery is sustainable," said Sal Guatieri, an economist at BMO Capital Markets. "We think there is enough government stimulus in place to push the economy forward and manufacturing will be getting support from a weakening U.S. dollar and strength in Asia which will boost exports." Also at the White House President Barack Obama stated Monday that the US economy is “back! from the brink” and the government has to fully concent! rate now on bringing the unemployment rate down and reducing debt. He further added that “bold, innovative action” must be taken by both the government and the private industry.

related story (sgx15795): http://news.yahoo.com/s/ap/20091102/ap_on_bi_go_ec_fi/us_eco...

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, Po! cketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:12 PM