August 1, 2009

Economic Indicators Looking Good

Unemployment rate seems to be flattening off. From BLS data, after increasing about 0.4% a month for 6 months straight from November 2008 to May 2009 the unemployment rate went up at a slower +0.1% from May 2009 to June 2009.

GDP dropped at a lower rate in Q2 than the previous two quarters. See: U.S. economy shrinks modestly GDP dropped -1.0% in the 2nd quarter. It was down -5.5% the previous quarter and -6% the last quarter of 2008.

The S&P 500 has had the largest 5 month gain since 1938. Between March 2009 and July 2009 the index rose about 46%.

Housing prices have been going up. The Case-Shiller home price index of 20 major markets was up +0.5% in May. Thats the first increase in three years.

Its too early to call an end to the recession, but the above are all positive signs that the economy is improving.

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