Achieving sustainable economic growth in the wake of the financial crisis has been long in coming. Optimistic expectations have been revised repeatedly. Now, it appears recovery finally is gaining a foothold and can be sustained for a while.
The U.S. recovery looks sustainable this time. A genuine improvement in U.S. economic conditions seems to have taken hold in the past 12 months, despite interruption by the extreme winter weather conditions. Threats to confidence—such as fiscal default in Washington—have now largely disappeared. The US continues to track a fairly normal recovery path for an economy that has been hit by a major housing and financial shock. Financial Times (tiered subscription model).
Fed Survey points to robust recovery. The U.S. Federal Reserve reports growing economic conditions in its “beige book”—a survey of U.S. economic conditions. Through the summer all regions reported growth conditions without exception. Financial Times (tiered subscription model).
How long will the expansion last? The current expansion has plenty of life left in it. The huge hit sustained during the crisis has had a positive side: it has given the economy plenty of room to run. JP Morgan reckons the expansion could last until 2018, which would make it one of the longest on record. The Economist (tiered subscription model).
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