More Signs the Economy is Stabilizing

Mark Ellis — Thu, 02 Jul 2009 03:08:43 +0000

Nowadays, news that would have been bad a couple of years ago serve as glimmers of hope in a troubled economy. Although manufacturing has shrunk again and home sales are still nowhere near they are in a strong economy, manufacturing decreased the smallest amount since August 2008 and home sales continue to creep upwards for the fourth month in a row.

According to the Institute of Supply Management, their factory index, which measures manufacturing, has risen in June to 44.8, with any number under 50 signaling a contraction. The National Association of Realtors has expressed a similar increase in the number of people signing home ownership contracts by 0.1 percent.

Analysts predict that we will continue to see a substantial improvement in the economy as a direct result of the economic stimulus programs. However, the improvement may not last until 2010 as the effect of the stimulus begins to slacken. Rising unemployment will also negatively impact consumer spending and keep much of the economy’s stabilization in check for a while as well.

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Post from: EveryJoe

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More Signs the Economy is Stabilizing