Last Thursday brought smiles to the faces of many, as the American Bureau of Economic Analysis announced an unexpected 3.3 percent increase in the GDP (gross domestic product). While GDP analysis has its limitations when it comes to ascertaining the true overall health of a national economy, bolstered figures are leading to the notion that America may finally be stirring from her economic slumber.
Many experts believe that the improved situation has come as a result of this year’s economic stimulus packages, although this would not explain why numbers in the failing housing market are beginning to take a turn for the better. The refunds were nowhere near large enough to drive people to purchase a home, and yet nonetheless it seems that buyers are beginning to come out of the woodwork.
It stands to reason that buying confidence is making a comeback in a troubled market where panicked sellers are quick to meet the terms of anyone who seems interested in making an offer. Be forewarned, however, as these marginal improvements are a long way from the actual end of this crisis. Figures that appear to be stabilizing are far from an actual turnaround, a fact we would do well to remember.
Another factor playing heavily into the economy’s current state is the present condition of our job market. August statistics are set for release on Friday; job losses are expected to increase for the eighth consecutive month. In fact, if the monthly figures reflect any more than 37,000 jobs lost, it will push the total number of Americans layed off in 2008 to an alarming 500,000.
While it is true that many aspects of our struggling economy are beginning to level off, it is important that we realize the greater truth. It is unmistakably going to be awhile before anyone can say with certainty that our troubles are over.
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