Data show economy is getting healthier

WASHINGTON -- The economy appears healthier than many had feared it was a few weeks ago, raising hopes it can end the year on an upward slope.

A raft of data Thursday shows layoffs are trending down to a six-month low and factories in the Mid-Atlantic region are growing after contracting for two months.

The outlook for the final six months of the year has improved from August, when many thought the economy was at growing risk of falling back into a recession. Other recent reports showed hiring picked up slightly in September and consumers boosted their spending on retail goods by the most since March.

Most economists now expect modest growth for the rest of this year. Still, they caution that it's unlikely to be strong enough to significantly lower the unemployment rate, which has been stuck near 9 percent for more than two years. And a recession in Europe, which many now predict, could slow growth in 2012.

"A recession [here] now looks a lot less likely, but economic growth is still going to be pretty weak," said Paul Ashworth of Capital Economics.

Reports Thursday included:

The average number of people applying for jobless benefits last week fell to 403,000, the Labor Department said. That's the lowest level for the four-week average since mid-April.

Manufacturing grew in the Philadelphia region in October after falling for two straight months, the Federal Reserve Bank of Philadelphia said. The October reading was the best for the Philly Fed's manufacturing index in six months.

The Conference Board index of leading economic indicators rose 0.2 percent in September. It was the fifth consecutive gain for the index, although it was slightly weaker than increases in August and July. -- AP