There have been several reports lately about possible signs that could indicate economic recovery. As bankruptcy filings continue to decrease so has the number of consumer’s defaulting on debt payments. Further, estimates of fourth quarter gains in 2011 also reveal some hopeful indications that the tides may be changing.
Year end growth reports estimate that the economy grew by nearly 2 percent in 2011. However, this was less than the growth observed in 2010. Economists believe that part of the reason for the slower than anticipated growth rate is that wages have failed to keep up with inflation. As more consumers cut back on spending a large portion of economic activity is impacted. While this is only half of the growth observed in 2010, any improvement in today’s economy is noteworthy and a cause for celebration.
Reports are anticipating hopeful projections for this year as the unemployment rate fell to its lowest in three years. Now hovering at around 8.3%, the unemployment rate has continued to drop for the last five months. Close to 243,000 jobs were added in January exceeding the anticipated 100,000 positions. Although payroll totals are still far less than prior to the start of the recession, there is much to be happy about with the latest reports showing more American’s finding employment and the overall growth rate on the upswing.