ECONOMY WEEKLY: WEEK OF JUNE 7, 2010

“The evidence strongly suggests that the Recovery Act has been effective in reviving economic growth. We have seen, for example, a swing from an average GDP decline of 5.9 percent on an annualized basis at the end of 2008 and beginning of 2009 to an average growth rate of 4.3 percent a year later, the largest one-year swing in GDP growth in three decades.”
 – Peter R. Orszag, Director of the Office of Management and Budget, 6/8/2010

 

Economy Highlights:

•  The Department of Labor reported that the number of laid-off workers continuing to claim jobless benefits fell by the largest amount since December 2008, “suggesting that more unemployed workers may be finding work. At the same time, new claims for unemployment insurance dipped slightly for the third straight week.”  [Associated Press, 6/10/2010]

•  This week, for the first time since the recession began in 2007, the Federal Reserve said that the economy is improving in all regions of the country: “A Federal Reserve survey, released Wednesday, found that economic activity improved across all 12 regions tracked. The last time all regions were in a growth mode was roughly before the recession started in December 2007.”   [Associated Press, 6/09/2010]

 

 

Recovery Highlight:

•  The Department of the Treasury released its monthly update on the Build America Bonds program, created by the American Recovery and Reinvestment Act, showing that $106 billion in bonds had been issued to state and local governments, which created and saved thousands of jobs: “Market reception for Build America Bonds has been very positive.  Between the program launch on April 3, 2009 and May 31, 2010: $106 billion in Build America Bonds has been issued;  Build America Bonds now constitute 21 percent of the municipal bonds market; and there have been a total of 1,306 separate issuances of Build America Bonds by local or state governments in 49 states, the District of Columbia and two territories.”   [Department of Treasury, 6/03/2010]