Economy, Economic Recovery | featured news

At the end of last year, the economy likely grew for the second straight quarter - possibly at the fastest pace in nearly four years....

The government said the economy shed 85,000 jobs last month, surprising forecasters, while the unemployment rate held steady at 10 percent.

Analysts had expected an increase. The number of newly laid-off workers filing claims for unemployment benefits dropped unexpectedly last week, the Labor Department reported today, a sign the job market is healing as the economy slowly recovers.

Dow futures were up 30 points. The S&P Case-Shiller home-prices indexes showed U.S. home prices decreased at a slower annual rate in October, but prices were flat compared to September.

U.S. employers expect to hire more new workers in 2010 than they did in 2009, a sign the U.S. recession may be easing its grip, research showed on Tuesday.

Treasury Secretary Timothy Geithner says he believes it's reasonable to expect "positive job growth" by spring and that people should have confidence about an improving economic climate.

The downward revision, to 2.2 percent growth from 2.8 percent, was partly because shoppers did not spend as much and construction was weaker than first thought.

The recovery may have gotten off to a slow start in the third quarter, but a surge in sales of existing homes in November could presage a more robust end to the year.

California's unemployment rate fell in November, another sign that a recovery is underway, even as the state shed jobs from its payrolls.

The state's unemployment rate slid to 12.3%, the Bureau of Labor Statistics reported this morning, down from 12.5% the month before. It is one of 36 states that saw unemployment rates decline in November.

Focused on keeping the recovery going and driving down double-digit unemployment, the Federal Reserve is poised to leave interest rates at a record low.