Economic Snapshot for August 2010 - Center for American Progress
August 20, 2010 | View Online
Economic Snapshot for August 2010
The private sector is on the road to recovery. Investment, production, and hiring are all up for 2010 after large losses in 2009. This turnaround would not have been possible without strong policy interventions in 2009. Yet private-sector momentum is in danger of substantially slowing due to continued large household debt, rising U.S. trade deficits, and weaknesses in state and local government finances. Highlights from this month's data include:
1. The U.S. economy has turned the corner. Gross domestic product grew at an annual rate of 2.4 percent in the second quarter of 2010, the fourth quarter in a row with expanding economic activity.
2. The trade deficit rises again. The U.S. trade deficit stood at 3.6 percent of GDP in the second quarter of 2010, up from its latest trough of 2.4 percent of GDP in the second quarter of 2009.
3. The labor market recovery takes hold. The U.S. economy added a total of 630,000 private-sector jobs in the first seven months of 2010. But state and local governments had 212,000 fewer jobs in July 2010 than in July 2009.