Economy showing signs of life

Economy showing signs of life, worry now is how sustainable rebound will be
By MARTIN CRUTSINGER
AP Economics Writer
(AP) 03:28:47 AM (ET), Thursday, October 1, 2009 (WASHINGTON)
Consumer spending, the bulwark of economic growth, is showing signs of life as the economy transitions from recession to recovery.

The key question is whether the spending rebound can be sustained while U.S. households face rising employment, tight credit conditions and other obstacles.

Economists believe that consumer spending, which accounts for about 70 percent of total economic activity, surged in August, reflecting the success of the government's Cash for Clunkers car rebate program.

While layoffs have slowed, they have not stopped, and many workers remain fearful about what the future holds. The Conference Board reported Tuesday that its widely watched barometer of consumer confidence dipped to a reading of 53.1 in September, from 54.5 in August, as Americans' worries about job security flared again.

The Commerce Department is scheduled to report on consumer spending for August on Thursday. In advance of that report, economists surveyed by Thomson Reuters expect that spending surged 1.1 percent, up from the 0.2 percent rise in July.

* We have seen signs of a slow economic growth.Understandably there are folks still losing jobs. I am not sure about this trend of job loses is slowing down. My cousin was laid off three months ago. She managed to find a job working evenings,full time.She doesn't mind the starting salary at this point nor working weekends.There are a few like my cousin finding employment. *