Economic Recovery, Good News | featured news

The 0.3 percent increase, the biggest since November, provided hope that the recovery was gaining momentum.

U.S. stocks rose broadly, with investors encouraged by a government report that job losses were less than expected in February.

Economists had expected the snowstorms to have a bigger impact, but job losses were surprisingly mild in February as employers cut 36,000 jobs.

While the 20-city home price index rose 0.3 percent from November to December, the index was off 3.1 percent from December a year ago.

Hopes that the economy can sustain its recovery drew support Wednesday from news that industrial ouput rose for a seventh straight month and home construction hit a six-month peak in January....

The number of newly laid-off workers seeking unemployment benefits fell more than expected last week to the lowest total in a month, a sign the job market may be improving.

The economy's service sector grew in January for the first time since September while the pace of job losses moderated, a private trade group said Wednesday.

Most banks have stopped toughening their lending standards for consumers and businesses, and manufacturing activity is at the highest levels in five years—both further signs of a strengthening U.S. economy.

Personal incomes rose more than expected in December and consumer spending increased for the third straight month, helping the economy slowly recover from the worst recession in decades.

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