Buffett on U.S. Economy: 'Significant Improvement'

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by: The Good News Economist

Over the weekend, Warren Buffett reportedly said that the economy is showing significant improvement for the first time since the financial crisis of 2008 and 2009.

There is "significant improvement" at Berkshire's industrial units, including Marmon and metalworking company Iscar, he said Sunday, expanding on comments he made a day earlier at his company's annual shareholder meeting in Omaha.

Buffett's comments come on the heels of a Friday report that showed the U.S. economy has expanded for three quarters in a row. The Commerce Department said that preliminary measures showed the economy grew at an annual rate of 3.2%, helped along by consumer spending. And the evidence is now clear that new jobs will follow. And at a faster rate than in any recovery in recent memory.

The shift in employment activity is most apparent in job postings, which have begun to surge. Indeed.com, which collects job listings from thousands of sources, reported a 19 percent increase in postings in March, versus the same month last year.

Buffett-controlled firms are also hiring again and he expects U.S. unemployment will now continue to fall as the economy improves.

"American business is improving, from everything I see now," he said. "At what rate unemployment will fall, I don't know, but it will fall."

Since the beginning of the year, the U.S. economy has started to create more jobs than it is losing. Several reports due out this week will underscore those measurements. Most economists now agree that the largest economy in the world is now netting between 200,000 and 500,000 jobs monthly.

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