New Data Suggests Recession Easing

Summary


WASHINGTON -- Evidence that housing is poised to improve and optimism about the results of banking "stress tests" raised hopes Monday that the recession is easing and helped lift a key stock market measure into the black for the year.

Construction spending and pending home sales both fared better than expected in March, and private economists saw the reports as further evidence that the overall economy is stabilizing after its bleakest stretch in a half-century. If so, the economy might be able to mount a recovery in the second half of 2009.

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New Data Suggests Recession Easing

Wall Street took the same view. All the major stock indexes jumped more than 2 percent. The Standard & Poor's 500 rose 3.39 percent, showing a gain for 2009.

"Investors believe the worst of the downturn is behind us," said Mark Zandi, chief economist ...

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