Three prominent U.S. economic forecasters have pegged growth for the gross domestic product in 2011 at higher rates than 2010.
Moody's Analytics, which estimated growth for 2010 at 2.7 percent, forecasts growth next year at 3.9 percent. Goldman Sachs predicts a 3.4 percent rise in the GDP next year. Macroeconomic Advisers has an even rosier prediction, estimating growth at 4.4 percent for 2011, The Washington Post reported Friday.
An increasing number of economists are saying the recovery, which wobbled in the middle of 2010, is now on stronger legs. "We're making a transition to a broader, more durable recovery," said PNC Financial Services Group senior economist Robert Dye.
Stock markets edged into higher ground in 2010, the Dow Jones industrial average rising about 11 percent, while the Standard & Poor's 500 rose close to 13 percent. The Nasdaq composite index of tech-dominated stock did better, rising nearly 17 percent.
In the last weekly report of 2010, the Labor Department said first-time unemployment benefit claims fell to 388,000 in the week ending Dec. 24.
In November, pending home sales rose 3.5 percent, the National Association of Realtors said.
Economists are also pointing to two stimulus programs that have yet to take effect. In 2011, the extended George W. Bush era tax breaks will include a 2 percent payroll tax cut, putting more in workers' pockets each week. Long-term unemployment benefits were also extended for 13 months and effects of the Federal Reserve's $600 billion bond purchasing program announced in November will begin to be felt.
In the fourth quarter, lending to businesses began to improve for the first time in two years and consumers, for two years, have worked hard paying down debt.
"Americans have been de-leveraging for the past two years, and as a result households are much better positioned for the future," said Bernard Baumohl, chief global economist with the Economic Outlook Group.