As we all know, the economy has not been in the best shape for some time now. However, the downward trend may be bottoming out. According to the Fed, most parts of the economy have recently been seeing “stabilization or modest improvements”. However, Real estate is still suffering in many areas of the country including Florida where the bust hit hardest.
While this is not necessarily great news, it does show a glimmer of hope for the economy. The general idea seems to be that things aren’t getting any worse, so they have to start getting better soon. In fact, a representative of the Fed has come out saying that he expects positive growth for the economy by the first half of 2010. Sounds like good news, seeing as that’s right around the corner. Unfortunately, that economic growth may not work out terribly well for everyone right off the bat.
Currently (as of October 15), the unemployment rate in the country is 9.5%. Economists are estimating that that will rise to 10% by the first quarter of next year. A stronger economy with an unemployment rate on the upswing doesn’t sounds terribly comforting. According to Bloomberg, companies have decreased layoffs, but are still reluctant to hire for the most part, adding to the high unemployment rate.
Unfortunately, a large part of economic stability comes from consumer spending. With so many consumers jobless, it becomes a little difficult to increase that spending. In fact, this causes the bankruptcy rate to go up. In many states, the bankruptcy rate is still on the increase, necessitating articles like this Arizona Bankruptcy article to help people who are looking down that road.
Grim as the outlook of this article has been, however, I do think that it’s necessary to point out that there are some industries doing comparatively well in the current economy. Not every industry has been having as difficult a time as the automotive and housing sectors.
If anyone has more to add on the subject, feel free to let us all know in the comments section. If you want to see more on how the economy is faring, check out bloomberg.com.