New figures indicate that the US economy is gathering steam as the year draws to a close. The Conference Board's measure of leading economic indicators jumped 1.1% in November, the biggest rise since March and the fifth straight monthly gain. The index's level is now at a record high of 112.4, the research group said.
It was the latest evidence of steady, if fragile, improvement in the country's growth prospects after a summer lull. Retail sales in particular have been surprisingly strong, raising hopes for consumer spending.
'The US economy is showing some sparks of life in late 2010,' said Ken Goldstein, an economist at the Conference Board. 'The indicators point to a mild pick-up after a slow winter. Looking further out, possible clouds on the medium term horizon include weakness in housing and employment.'
US gross domestic product grew at a 2.5% annual rate in the third quarter, but that was not enough to bring down the jobless rate, which rose to 9.8% in November.
US Congress passes Obama tax deal
US lawmakers gave final approval last night to President Barack Obama's contentious deal with Republicans to avert a New Year tax hike and extend aid to the jobless, despite a Democratic rebellion.
A day after the Senate passed the package by an 81-19 margin, the House of Representatives followed suit with a 277-148 vote.
The $858 billion measure was expected to give the US economy a much-needed boost while digging the country's deficit and debt deeper, as the world's richest country emerges from the worst downturn since the 1930s.
Obama, seeking a restorative bi-partisan victory six weeks after Republicans routed his Democrats in November 2 elections, had stressed the package extends middle-class tax cuts for two years and jobless benefits for 13 months.
But some angry Democrats opposed the plan for including an identical extension for the richest sliver of US earners and rolling back the inheritance tax that affects only the wealthiest estates.
Obama - who campaigned on a vow to let tax cuts lapse on income over $250,000 for families or $200,000 for individuals - dropped that insistence after the elections and urged fellow Democrats to do the same.
