The Clinton Herald, Clinton, Iowa

AP story section

November 28, 2012

US economy gets lift from consumers, businesses

WASHINGTON, D.C. — American consumers are growing more confident about the job market, companies are ordering more equipment and home prices are rising in most major cities.

The latest batch of government data suggests that the economy is improving just as the holiday shopping season begins. The only threat is a package of huge spending cuts and tax increases, known as the "fiscal cliff," that will kick in unless Congress strikes a budget deal by year's end.

Rising home values, more hiring and lower gas prices pushed consumer confidence in November to the highest level in nearly five years. And steady consumer spending appears to have encouraged businesses to invest more in October after pulling back over the summer.

Those trends could boost economic growth slightly in the final three months of the year. But the real payoff could come early next year, if the fiscal cliff is avoided. Businesses that have postponed expansion plans could move forward with projects. That could lead to more hiring.

"Right now, households don't seem to be letting the fiscal threat control their urge to spend," said Joel Naroff, president of Naroff Economic Advisors. "The first weekend of holiday sales was great, vehicle sales are holding up and housing is strong."

Reports Tuesday showed:

— The Conference Board's consumer confidence index rose to 73.7 in November from 73.1 in October. Both are the best readings since February 2008. The index is still below 90, the level that is consistent with a healthy economy. It last reached that point in December 2007, the first month of the Great Recession. But the index has increased from the all-time low of 25.3 touched in February 2009.

— The Standard & Poor's/Case-Shiller 20-city index of home prices rose 3 percent in September compared with the same month last year. Prices also gained 3.6 percent in the July-September quarter compared with the same quarter in 2011. Prices increased in 18 of 20 cities over the 12-month period.

— A third report showed that companies ordered more industrial machinery and other large equipment in October. Orders for core capital goods, considered a proxy for business investment, rose 1.7 percent in October, the Commerce Department said. That's the largest increase since May and it follows sharp declines over the summer.

 

1
Text Only
AP story section
  • State to reopen Juvenile Home DES MOINES -- A district court judge on Wednesday ordered the state to reopen the Iowa Juvenile Home, telling Gov. Terry Branstad he cannot unilaterally change a law approved by the state Legislature. Judge Scott Rosenberg said the home in Toledo was

    February 6, 2014

  • Panel OKs ban on remote abortion pill distribution DES MOINES -- A legislative panel approved a measure Wednesday that would ban the remote distribution of abortion pills, a proposal the bill's sponsor said is intended to delay the procedure and give women more time to change their minds. The subcomm

    February 6, 2014

  • Sioux City gambling group halts local grants SIOUX CITY -- The nonprofit that holds the gambling license for the Argosy Sioux City riverboat casino has voted to temporarily stop sending grants to local charities and government agencies. A legal dispute with the operator of the casino, Penn Nati

    January 15, 2014

  • Davenport pays, apologizes to hearing impaired man DAVENPORT (AP) -- The city of Davenport has issued an unusual apology to a former alderman after a police employee was caught on tape saying that he intentionally knocked softly on the hearing-impaired man's door when responding to a service call. Th

    January 15, 2014

  • Budget Branstad presents budget for next fiscal year DES MOINES -- Gov. Terry Branstad offered a budget proposal Tuesday that includes a tax break for veterans, a tuition freeze for college students and incentives to encourage Internet expansion in rural Iowa, a more modest list of priorities one year

    January 15, 2014 1 Photo

  • Gov. restores more felons' voting rights IOWA CITY (AP) -- Gov. Terry Branstad restored voting rights to more felons in 2013 than the prior two years combined, but thousands of others remain disenfranchised under a 2011 policy change. Data released by the governor's office to The Associated

    January 15, 2014

  • Man fatally shot at Fla. theater over texting WESLEY CHAPEL, Fla. (AP) -- A 71-year-old retired police officer accused of shooting a man dead in a Florida movie theater told authorities that "he was in fear of being attacked" during Monday's confrontation. Curtis Reeves is charged with second-de

    January 15, 2014

  • Iowa Senator: Congress must confirm election board DES MOINES -- An Iowa senator asked a U.S. Senate committee Wednesday to confirm appointees to a federal election commission so a decision can be made about whether Iowa Secretary of State Matt Schultz is properly using money for voter-fraud investig

    January 9, 2014

  • School Discipline Gov't: End overly zealous discipline in schools WASHINGTON, D.C. -- The Obama administration is urging schools to abandon overly zealous discipline policies that civil rights advocates have long said lead to a school-to-prison pipeline that discriminates against minority students. The wide-ranging

    January 9, 2014 1 Photo

  • Governor, lawmakers set modest goals for 2014 DES MOINES -- After reaching bipartisan agreements on several major policy initiatives last year, Gov. Terry Branstad said Wednesday that he is setting more modest expectations for the 2014 legislative session. Speaking at The Associated Press' annua

    January 9, 2014

AP Video
Facebook
National News