But fewer people sought unemployment benefits last week than at any time in nearly four years. And manufacturing expanded in the Northeast in January, according to surveys by the Federal Reserve banks of New York and Philadelphia. By CHRISTOPHER S.
By CHRISTOPHER S. RUGABER
Associated Press
WASHINGTON — The economy is off to a fast start in 2012.
The outlook for hiring has brightened as applications for unemployment benefits near a four-year low.
Adding to the optimism, inflation remains low, business travel is up and the home market is showing slight gains after three dismal years.
That’s the picture sketched by a flurry of data Thursday. It followed other reports that show the economy began the year with vitality: Companies are hiring more, consumer confidence is up, more people are buying cars and factories are making more goods.
Even bank lending, which all but froze during the depths of the financial crisis, is on the rise.
Many economists caution that it’s too early to conclude that the recovery is accelerating.
“There’s no doubt that the economy is getting better; we just shouldn’t get carried away,” Mark Vitner, an economist at Wells Fargo, said. “We haven’t shifted into a higher gear.”
Despite six months of solid job growth, unemployment remains painfully high at 8.5 percent.
But fewer people sought unemployment benefits last week than at any time in nearly four years. And manufacturing expanded in the Northeast in January, according to surveys by the Federal Reserve banks of New York and Philadelphia.
