Summary Box: Threats of second recession, deflation fade as jobless claims fall, prices rise
By APThursday, September 16, 2010
Summary Box: 2 threats to the economy fade
THREATS FADE: Two threats to the economy receded Thursday. Applications for unemployment benefits fell for the third time in four weeks, and wholesale prices rose.
TRENDS REVERSE: The reports indicate companies aren’t ramping up layoffs, and deflation is less of a threat. Concerns about layoffs rose last month when jobless claims soared to a nine-month high. Fears of deflation, a drop in prices and wages, appeared in early summer after wholesale prices fell for three months.
SLOW ECONOMY: Still, economic growth is sluggish. The jobless rate is expected to remain above 9 percent well into next year.
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