Is recession finally over? Possibly
The economy accelerated last quarter. But is it driving off a cliff?
The car comparison is apt, because economists believe the third-quarter improvement in the nation's Gross Domestic Product depended heavily on the "cash for clunkers" program. The tax credit for first-time home buyers also had a role.
(AP)
Other signs, however, say Americans are still under stress. With banks stingy with credit and unemployment high, some believe the economy could lapse back into recession.
The GDP, the measure of the nation's economic output, rose at an annual rate of 3.5 percent during the July-through-September quarter, the Commerce Department said Thursday.
The increase was the first positive figure for the quarterly data since the second quarter of 2008. Commerce Department figures show the economy has contracted all but that one quarter since the end of 2007.
Most economists believe the recession is over, but they'll watch closely as the government, laboring under a $1.4 trillion budget deficit, scales back incentives for consumer spending. "Cash for clunkers" expired, but Congress is considering an extension of the home buyer tax break, which is scheduled to end Nov. 30. David Roeder