Economic Recovery, Good News | featured news

Home resales rose in April to their highest annual rate in nearly two years and a falloff in foreclosures pushed prices higher, hopeful signs for the country's economic recovery.

What only weeks ago was seen as a serious threat to the economic recovery could now turn into a stimulus everyone can love. Oil and gasoline prices are sinking, giving relief to businesses and consumers who a few weeks ago seemed about to face the highest fuel prices ever.

When it comes to the economic recovery, timing is everything — and so far, it’s been off. Take the market performance of housing and autos, two big-ticket purchases that traditionally have moved in tandem. But new data released this week showed housing prices and new home sales dropping off at the same time that auto sales were peaking.

New orders for U.S. factory goods rebounded in February and firms increased orders for capital goods, suggesting manufacturing held on to some momentum early in the year.

Spending rose by the most in seven months, raising hopes that first quarter economic growth may have been stronger than expected.

Stronger hiring and higher pay and savings should support solid growth for the economy in coming months. That was a key message that emerged Wednesday from a report on economic growth in the final three months of 2011. The economy grew at a 3 percent annual rate in the October-December quarter, up from a previous estimate of 2.8 percent, the Commerce Department said.

The number of Americans filing new claims for jobless benefits hit a 3-1/2 year low last week, bolstering views the economy was gaining momentum, even though third-quarter growth was revised down.

Employment growth picked up speed in November and the jobless rate dropped to a 2-1/2 year low of 8.6 percent, further evidence the economic recovery was gaining momentum.

International Monetary Fund Managing Director Christine Lagarde said on Wednesday the global economy was rebounding from the financial crisis but recovery remains unbalanced.

Americans are finally getting some relief from high gas and food prices. Wholesale food prices fell last month by the most in nearly a year, and gas prices keep dropping after peaking in May. A separate survey suggests CEOs are feeling more optimistic and will hire more in the second half of this year.