Enthusiasm for economic recovery wanes - WMC Action News 5 - Memphis, Tennessee

Enthusiasm for economic recovery wanes

(NBC) - Enthusiasm for an economic recovery is cooling as many industries across the country are still struggling.

After the worst summer for home sales in 10 years, demand is up slightly, but the National Association of Home Builders says its monthly index, the measure of optimism, only grew to 16, meaning builders still see the landscape as grim.

"Our index is based on a scale of 100, so mid range is 50. Sixteen is very, very low," association CEO Jerry Howard explained.

For the first time in more than a year, America's mines, utilities and factories saw a slow-down. Factory output and industrial production were both down 0.2 percent in September.

"Production is being throttled back since spending is not growing as rapidly as it has in the early phases of the recovery," Brian Bethune of Global Insight said.

Still, there are some bright spots.

GE announced a new $432 million dollar investment and 500 additional jobs for GE Appliances.

Citigroup reported its third straight quarter of profits, better than analysts' expectations after the bank accessed funds set aside to cover bad loans. It's an indication that it is confident customers will be able to make payments.

Copyright 2010 NBC. All rights reserved.

Powered by Frankly