- Senators question $1 million pay for charity's CEO
- Stocks higher on surprising retail sales growth
- Court upholds 'under God' in Pledge of Allegiance
- AP Source: Obama wants Yellen as Fed vice chair
- Tyler police sponsoring bike registration
- God gets a nod in Texas lesson plans
- Decomposed body found in Longview creek
- What to do with the millions of illegal aliens?
Putting the U.S. Economy Back Into Drive
September 2, 2009 - 9:15am
UNDATED—New numbers released Tuesday show the Cash for Clunkers program and home sales may be putting the U.S. economy back into drive and on a road to recovery.
Auto sales spiked in August, thanks to the successful Cash for Clunkers program. Sales of pre-owned homes hit a two-year high in July. Meanwhile, manufacturing orders are up for the second straight month.
However, some analysts say despite the numbers the recession is far from over.
"Right now we have an economy that is still declining. We have unemployment that is still rising and we have a consumer that is flat on his back," says IHS Global Insight economist, George Magliano.
Analysts say the spike in manufacturing may be a reflection of businesses restocking low inventories. In addition, they warn that the auto industry is bracing for a 30 percent decrease in sales this month.
The cash for clunkers thing is only a government bail out of the auto industry. Although this may produce positive numbers, this is not a true indication of what the overall economy is doing.
Rick Hall
6 months agoPost new comment