U.S. economic performance to speed up as year comes to a close

U.S. economic performance to speed up as year comes to a close

U.S. economic performance is expected to get stronger in the final months of the year if current trends continue. There is a noticeable increase in automobile sales, construction projects and manufacturing production lately. Stocks also performed well on Wednesday following a report that new jobs were added by the private sector, the largest hiring in nearly three years. The Dow Jones Industrial Average bucked a losing trend in the past couple of weeks to gain 2 percent on Wednesday. Investments were bolstered by the report of a stronger job market.

According to a trade association, factory output increased for the 16^th month in a row in November amid strong car sales and increased investment in machinery and equipment. The index of manufacturing activity for November was 56.6 according to the Institute for Supply Management. October posted a 56.9 rate. Surpassing the figure of 50 means the manufacturing sector is growing. During the height of the recession the figure was close to 30.

Meanwhile, the Federal Reserve said that U.S. economic performance in 10 of 12 regions nationwide was rising. Only the St. Louis and Philadelphia areas reported mixed economic indicators. GM, who is back from bankruptcy, said its sales were up in double figures. Ford and Chrysler also reported bullish sales.

Store sales were also up during the Black Friday and Thanksgiving weekend and retailers hope that consumers continue to spend until the holiday season. The increased consumer spending and other positive signs lately have indicated that the strong economic performance in recent months may pave the way to a complete recovery.

Posted by James Fried on Thursday December 02 2010, 4:16 AM EST. Ref: AP. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0