By CHRISTOPHER S. RUGABER
Associated Press
WASHINGTON -- The ending of the recession is reviving global trade, increasing U.S. imports by a record amount in July and boosting foreign demand for American goods for a third straight month.
While the job market remains a long way from recovering, first-time claims for unemployment benefits fell more than expected last week, offering some cause for optimism.
The jump in imports could be a sign that U.S. consumer spending is recovering, economists said. That's good news because such spending accounts for 70 percent of economic activity.
"Domestic demand has picked up now that we have shifted from recession to recovery," Bernard Baumohl, chief economist for the Global Outlook Group, said in a note to clients.
The Obama administration is increasingly citing its $787 billion stimulus package as a critical reason the economy is turning around, even as officials acknowledge that jobs remain scarce.
The White House's Council of Economic Advisers said Thursday the administration's efforts have saved or created 1 million jobs. President Barack Obama has promised that the stimulus plan will create or save 3.5 million jobs by the end of next year.
"A full and vibrant recovery is still many months away," Obama said Wednesday night before a joint session of Congress. "But thanks to the bold and decisive action we've taken ... I can stand here with confidence and say that we have pulled this economy back from the brink."
Republican lawmakers point out that a net total of 2.4 million jobs have been lost since the stimulus legislation was signed in February. The unemployment rate is still rising and jumped to 9.7 percent in August, the highest in 26 years, from 9.4 percent the previous month.
