ECONOMY WEEKLY: WEEK OF JUNE 14, 2010

“The incredible measures [The Recovery Act and TARP] needed to be taken to make sure there wasn't a collapse, both in terms of stabilizing the financial system and then priming the pump of the economy, because it had been slowed down so much. Now, we're seeing the benefits that those things have been done.”
– Bill Gates, 6/13/2010

 

Economy Highlights:

•  This week, top economists predicted that the economy will continue to recover in the next two years: “Economists from top U.S. financial firms said Wednesday they expect continued moderate economic growth…. A total of 2.2 million jobs are expected to be added to the private sector this year, with another 2.5 million in 2011, the panel of economists projected…. The panel anticipates consumer spending, which makes up most of gross domestic product, will grow roughly 3%, on average, this year and next.”  [Wall Street Journal, 6/16/2010]

•  In additional signs of continued recovery, factory production and manufacturing continued to improve in May. The output of U.S. factories, mines and utilities rose 1.2% in May, “the fastest [rate of growth] since August last year, and … 7.6% higher than a year earlier.” In addition, “manufacturing remains a key engine of the economic recovery. Factory production rose 0.9 percent, the third-straight monthly increase.”  [Associated Press, 6/16/2010]

 

 

Recovery Highlight:

•  This week, the White House announced a six-week-long campaign to highlight Recovery Act nationwide infrastructure projects that will be underway throughout the next few month, “and the jobs they’ll create well into the fall and through the end of the year.  The Recovery Act has already funded tens of thousands of projects and put about 2.5 million Americans to work, but summer 2010 is actually poised to be the most active Recovery Act season yet, with tens of thousands of projects underway across the country that will help to create jobs for American workers and economic growth for businesses, large and small.”  [White House, 6/17/2010]

 

•  Today, President Obama will travel to Columbus, Ohio to mark the start of the 10,000th road project launched under the Recovery Act. “The project in downtown Columbus is expected to create more than 300 construction jobs and contribute to economic development efforts that are under way in the area around Nationwide Children's Hospital, the White House said.”  [UPI, 6/18/2010]