The economy may be making a comeback

POSTED: Friday, October 28, 2011 - 2:01pm

UPDATED: Friday, October 28, 2011 - 2:01pm

The Commerce Department reports growth last summer was the strongest in a year.

It's encouraging news, coupled with the fact that a big bailout in Europe sent Wall Street soaring.

Investors seem thrilled that the European Union is giving Greece a big bailout.

The Dow soared over 300 points, and we're already seeing Asian and European markets up this morning.

With the Greek Foreign Minister visiting the state department, President Obama said what happens there has a direct impact on American workers. "If Europe is not growing, as our largest trading partner, that's going to have an impact on our businesses and our ability to create jobs here in the United States."

New unemployment claims fell a bit this week, amid news that the economy grew 2.5% over the summer which is almost twice as much as last spring. "We're moving further and further away from the possibility of the so-called double-dip recession," said CNBC's Hampton Pearson.

Consumers are spending money, but with disposable income down, they're dipping into savings. That's a concern. Businesses are spending too cautiously. "We are not and should not be in the businesses of making it more difficult for the public entities nor the private sector businesses to operate," said House Majority Leader Rep. Eric Cantor (R-VA).

The Federal Reserve meets next week to decide if more action is necessary on their part to keep the economy growing.

Analysts attribute last summer's growth to a dip in gas prices. Gas cost less, so consumers spent more.

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