Michigan Gov. Rick Snyder speaks Thursday during a launch for the 2012 Ford Focus at the Michigan Assembly Plant in Wayne, Mich. (AP Photo/Paul Sancya)WASHINGTON – Factories are producing more cars, computers and household appliances, and applications for unemployment benefits over the past four weeks are at the lowest point since summer 2008.
Economic data released Thursday suggest that March will be the second straight month of strong job growth. And the reports helped Wall Street rebound a day after the market suffered its biggest drop in seven months.
Still, rising prices for household necessities and trouble overseas could slow the U.S. economy in the coming months.
“We have a lot of momentum in the U.S. economy right now,” said Kurt Karl, chief economist at Swiss Re. “That’s good, particularly since we’re going to be challenged by higher oil prices” and the impact of Japan’s earthquake and nuclear crisis.
A key reason for the brighter outlook is that factory production increased in February for the sixth straight month. The Federal Reserve said production of cars and auto parts jumped 4.2 percent, nearly matching January’s gain. Production of furniture, electronics and appliances all rose.