Economy, Economic Recovery | featured news

Signs that manufacturing in the United States was on a path to recovery sent stocks upward on the first trading day after one of the steepest plunges in months.

President Barack Obama said Saturday that reports the economy is growing again and that more than 1 million jobs were saved or created by his stimulus plan show "we are moving in the right direction."

The government reported that output of goods and services grew at a 3.5 percent annual rate, which was faster than expected. But it will be months before job-seekers feel the benefits.

New orders for long-lasting U.S. manufactured goods rose 1 percent in September, Commerce Department data showed on Wednesday, suggesting that the economy's wobbling recovery from recession may be steadying.

Sales of previously owned U.S. homes surged to their highest level in more than two years in September, a survey showed on Friday, providing further evidence the housing market and economy were on the mend.

Foreign direct investment into China rose 19% in September, suggesting appetite from abroad for investing in China is picking up as the economy recovers.

The U.S. service sector grew in September for the first time in 13 months, an encouraging sign for the fledgling economic recovery although jobs remain scarce.

The U.S. economy will grow more than expected in the third quarter, but unemployment also will continue to increase and will pass 10 percent, former Federal Reserve Chairman Alan Greenspan said Sunday.

The economy sank at a pace of 0.7 percent in the spring, a better-than-expected performance that provided more evidence that the recession was ending.

Federal Reserve Chairman Ben Bernanke said Friday a government program intended to spark lending to consumers and businesses is still necessary even with other emergency lending programs winding down as the economy recovers.