The economy is growing at 3%, and the unemployment rate is 8.3%. The FED vows to keep interest rates fixed through 2014 and expects the improvement to be short lived. The Gazelle Index believes growth and employment will be sustained through 2012.
To understand how the economy is doing, most people look to the unemployment rate. However, other indicators may be even more important. It all depends upon where the economy is in the business cycle.
Unemployment went down in December from 8.7% to 8.5%. But more importantly, jobs increased in industries hardest hit by the recession, manufacturing, construction and retail.
