Hopeful signs for U.S. economy
Betty Hyde inspects Highlanders at the Toyota manufacturing plant in Princeton, Ind. Toyota is expanding the factory and adding 400 jobs. (Feb. 8, 2012) Credit: AP
Blessed signs are everywhere that the U.S. economy is turning around.
The latest, yesterday, was word that initial jobless claims for the week ended Feb. 11 fell by 13,000, confounding economists who had predicted an increase. The new level -- 348,000 -- is the lowest in four years.
And it's far from the only positive sign. Unemployment, at 8.3 percent, is at a three-year low and quite likely to fall further in the months ahead. Housing starts in January rose more than expected, and building permits -- an important harbinger -- were also up.
These are all good omens suggesting that a recovery -- however fragile -- from the worst economic downturn since the Great Depression is under way. That's welcome news for all Americans, but especially the one in the White House, whose electoral prospects are inextricably linked to the economy.
Relief at the long-awaited upturn must be tempered by caution, since things are still far from normal. Americans are still finding it hard to change jobs, for example, perhaps because they can't easily sell their homes and relocate.
And various external threats could undermine any U.S. recovery. The European debt crisis remains unresolved, and conflicts with Syria and Iran could take a violent turn, leading to higher energy prices that sap the world's economic vitality.
So we're not out of the woods yet. But at least we're on the right track.
