WASHINGTON — Happy economic days appear to be on the horizon, according to Joint Economic Committee Chairman Bob Bennett. But he says some hard work remains to make those expected good times last.
That came as Bennett's committee released this week one of its periodic snapshots of the economy, titled "Recent Economic Developments."
It said, "With concerns about the war now diminished, many timely economic measures, namely, financial markets, oil prices, and consumer sentiment, have begun to improve."
It added, "In light of these improvements and the recent tax package, forecasters anticipate significantly faster growth in the second half of the year."
But Bennett, R-Utah, said to help strengthen and lengthen better economic times — beyond the passage of the recent tax cuts — more work is needed.
"Passage of the jobs and growth package was an important step, but it is not the end," he said.
"The indicators in today's report, as well as major issues on the horizon, show us clearly that we still have much work to do. Congress will soon need to address what tools we must use, in addition to tax cuts, to grow our economy and prepare for future challenges."
Among positive signs listed by the report are that consumer confidence has grown since the end of the war with Iraq; the housing market continues to be strong, assisted by record low mortgage interest rates; stock markets have continued to rise; oil and natural gas prices have dropped; and forecasters see growth in the gross domestic product accelerating up to about 3.7 percent in the fourth quarter.
But the report had several worrisome statistics, too.
For example, payroll employment fell by 48,000 jobs in April — bringing total job losses this year to more than 300,000. Also, personal income was flat in April, and consumer spending had edged down.
Also, industrial production declined in March and April. The dollar has fallen significantly against major currencies. The trade deficit continued to widen in March. And the demand for U.S. exports continues to be weak.
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