ECONOMY WEEKLY: WEEK OF JANUARY 11, 2010

For Immediate Release:

January 15, 2010

Contact:Katie Grant
Stephanie Lundberg
(202) 225 - 3130

 
“As 2010 opens, the American economy is dramatically improved from a year ago. Financial markets are much more stable and real GDP appears to be growing solidly. Employment loss in the fourth quarter of 2009 was one-tenth the level it was in the first quarter of the year, and early indicators of labor market improvement, such as the hiring of temporary workers, are showing encouraging signs. Of course, with the unemployment rate still at 10 percent, the American economy is far from healthy. But, there is little question that the economy is on the road to recovery.”

– Council of Economic Advisors: The Economic Impact of the American Recovery and Reinvestment Act of 2009 Second Quarterly Report, 1/13/10
 
 
Economy Highlight:


• A Federal Reserve report issued this week shows that the economy's recovery broadened during the last months of 2009, due to an increase in home sales, improvements in the manufacturing sector, and holiday retail sales that experienced a +5.4 increase over last year’s sales. “The Fed's latest ‘beige book’ … finds that while economic activity remains at low levels, businesspeople reported improvements in most of the country. Those contacted in 10 of the 12 Federal Reserve districts said there was increased economic activity or an improvement in conditions,” compared with only eight districts at the time of the last report. [Washington Post, 1/14/10]  
 
 

Recovery Highlights:
 
• This week, the White House Council of Economic Advisors (CEA) sent to Congress their second quarterly report on the impact of the Recovery Act, indicating that it created or saved nearly 2 million jobs and has contributed to even broader economic growth. “‘The most important bottom line is to say that close to 2 million jobs have been created or saved by the close of 2009, a truly stunning . . . effect of the act,’ [Chair Christina Romer] said. Still, she added, there is a need for additional spending to spur job creation, as President Obama has called for.” [Council of Economic Advisors, 1/13/10; Washington Post, 1/13/10]


•  Housing and Urban Development (HUD) Secretary Shaun Donovan announced $2 billion in Recovery Act awards to states, local governments and non-profit housing developers as part of HUD’s Neighborhood Stabilization Program. Nearly 60 grantees are receiving awards which aim to spur economic development in hard-hit communities and create jobs. [White House, 1/14/10]
 
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