The ship is righting, slowly but surely. In addition to the report that unemployment claims are at their lowest levels since April 2008, consumer sentiment is at its highest level in six months and economic indicators have shown solid gains for two months.
First on consumer confidence,
Consumer sentiment improved in December to its highest level in six months as Americans felt better about the economy's prospects for the year ahead, a survey released on Thursday showed.
The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment rose to 69.9 from 64.1 in November.
It topped the median forecast of 68.0 among economists polled by Reuters and beat December's preliminary figure of 67.7.
Overall, real spending is expected to increase by 1.8 percent in 2012 as long as action is taken on extending the payroll tax cut, the survey said.
Next on economic gains,
A gauge of future economic activity posted a solid increase in November, providing further evidence that the economy is gaining strength.
The Conference Board said its index of leading economic indicators rose 0.5 percent in November following a 0.9 percent gain in November which had been the strongest showing in eight months.
Conference Board economists said the two months of solid gains in the index signaled that the economy was gaining momentum and the risks of a recession were receding.
This is all good news for everyone except those with a vested interest in bad news. Yes, continued economic gains will be helped by the payroll tax extension, which is in doubt. Yes, the Republicans are trying to do everything they can to stall the recovery. Yes, Europe in a mess. Yes, unemployment is still too high and the pace of recovery is to slow.
But things are so much better than they were three years ago because now, unlike then, we are moving in the right direction. We will only be able to continue making progress if the people begin to recognize this positive movement and appreciate that the Republicans, who have been trying to tank the economy, must be thrown out of office.