The UCLA Anderson Forecast is out this morning. It indicates the domestic economy is on the mend.
Forecasters say that mending is happening slowly, in fits and starts. Companies are investing more in equipment and software, taking advantage of low interest rates.
Exports are also strong, as emerging economies in Asia begin to need American stuff.
"We’re selling machinery," says Anderson senior economist David Shulman. "We’re selling airliners. We’re selling high-tech goods. Agricultural products. Agriculture is booming."
Shulman says the U.S. economy will add about 160,000 jobs a month this year. He’s quick to add the unemployment rate won’t reflect that right away.
"When jobs begin to get created, some people who say they’re not in the labor force will say they are in the labor force. And that’ll increase the stated unemployment rate. We’ll still be creating jobs."
More than 2.5 million jobs next year, the forecast predicts, and 3 million the year after. That’ll drop the unemployment rate below 8 percent in a couple of years.