U.S. Economy Growing – Is the Recession Over?
The U.S. economy saw growth for the first time in over a year, according to a report by the Commerce Department, signaling an unofficial end to the “Great Recession”.
In the three-month period ending September 30, the economy grew at a rate of 3.5%, higher than the 3.2% growth rate expected by economists. It was the first quarter to see growth since the second quarter of 2008, ending four straight quarters of economic decline.
According to the National Bureau of Economic Research, the recession official began in December, 2007. An official proclamation on the end of the recession by the NBER, a private, non-profit research group, isn’t expected for several months.
According to Forbes Magazine, the economic growth was driven by stimulus-backed consumer spending, including Cash for Clunkers new car sales. Other contributes were new home construction, private business and exports.
However, other signals of the recession are expected to remain well into 2010. Job creation is slow, and unemployment is expected to reach 10% in the next year before tapering down. Personal bankruptcy filings are expected to reach 1.5 million this year, the highest since 2005 (when many rushed to file due to the new bankruptcy law).
