ECONOMY WEEKLY: WEEK OF MAY 17, 2010

For Immediate Release:

May 21, 2010

Contact:

Katie Grant
Stephanie Lundberg
(202) 225 - 3130


 
“The economy's recovery is gaining steam as companies invest and consumers spend more.”
– Wall Street Journal, 5/21/10

 
Economy Highlights:

•  In positive news for the economy, economic experts announced that we can expect to see the economy grow and the unemployment rate drop in the next year: “U.S. recovery is finally starting to gain traction, leading Federal Reserve officials and private analysts to upgrade their expectations for growth. The Fed's leaders now expect gross domestic product to expand to 3.2 to 3.7 percent this year … up from 2.8 to 3.5 percent projected in January. They also expect the unemployment rate to fall to the 9.1 to 9.5 percent range by the end of the year…. The revised forecast highlights the gathering strength of the recovery.”  [Washington Post5/20/2010]

•  General Motors announced its first profit in three years, a good sign that efforts to save America’s auto industry are seeing results: “General Motors said Monday that it earned its first quarterly profit since 2007…. G.M. reported first-quarter earnings of $865 million as its revenue surged 40 percent, to $31.5 billion…. The $865 million net profit compared with a loss of $6 billion by the old G.M. in the period a year earlier.”   [New York Times5/17/2010]

•  The U.S. Census Bureau and MacroMarkets LLC reported positive improvements in the U.S. housing sector: “U.S. home prices will begin a gradual recovery by next year, according a survey of 92 economists and other housing analysts by MacroMarkets LLC. Separately, the U.S. Census Bureau reported that single-family housing starts in April surged to a seasonally adjusted annual rate of 593,000, up 10.2% from March.”   [Wall Street Journal5/19/2010]

•  The Kauffman Index of Entrepreneurial Activity reported that in 2009, the creation of new businesses reached a record high: “More entrepreneurs launched new businesses in 2009 than at any other time in the past 14 years…. The figures from the Kauffman Index of Entrepreneurial Activity report that entrepreneurs have remained a strength of the U.S. economy amid one of the worst recessions on record.”   [The Hill5/20/2010]
 
 
Recovery Highlight:

•  During his visit to Ohio this week, President Obama traveled to Youngstown, OH, to highlight how Recovery Act funds are helping America’s industries grow and create jobs: “[V&M Star, a manufacturer of steel tubular goods] is in the process of a $650 million expansion of its operations, thanks in-part to the Recovery Act.  A $20 million Recovery Act investment in transportation infrastructure funding helped propel the expansion when it was under consideration by Vallourec, the parent company of V&M Star…. Recovery Act funds were allocated to make the park a ‘shovel ready’ site for an industrial use such as V&M’s expansion.  The new facility is expected to employ an additional 350 people, doubling the size of V&M Youngstown’s workforce once complete.”   [White House5/18/2010]
 
 
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