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The worst U.S. economic slump since the Great Depression abated in the second quarter as government spending programs started to kick in, while the sharpest pullback by consumers since 1980 augured a muted recovery.

Gross domestic product shrank at a better-than-forecast 1 percent annual pace after a 6.4 percent drop the prior three months, Commerce Department figures showed yesterday in Washington. A survey of purchasing managers showed separately that business contracted less than estimated in July.

Consumer spending, which accounts for about 70 percent of the economy, fell at a 1.2 percent pace following a 0.6 percent increase in the prior quarter. It was forecast to drop 0.5 percent, according to the survey median. Purchases slid 2 percent since the peak at the end of 2007 — the most since a 2.4 percent decline in the 1980 recession.

Source: bloomberg.com

U.S. stocks fell for a second day as plunging Chinese shares and commodities stoked speculation that the surge in equities has outpaced the economy, while the Treasury sold notes at a higher-than-forecast yield.

Stocks in China plunged on speculation the government will curb inflows into a market that had doubled from last year’s low. The benchmark gauge, which has surged 79 percent this year, tumbled 5 percent to end a five-day, 7 percent advance that pushed valuations to the highest since January 2008.

The dollar advanced the most against the currencies of six major U.S. trading partners in almost four weeks as stocks fell and crude oil slumped, bolstering demand for the greenback as a haven.

Crude oil fell the most in three months after a government report showed an unexpected gain in U.S. supplies as imports rose and refiners cut operating rates.

Stockpiles surged 5.15 million barrels to 347.8 million in the week ended July 24, the Energy Department said. It was the biggest weekly increase since April. Supplies were forecast to decline by 1.5 million barrels, according to the median of analyst estimates in a Bloomberg News survey.

Source: Bloombeg.com

U.S. and European stocks fell, extending losses from the first weekly decline for global equities in more than a month, as the World Bank said the recession will be deeper than previously forecast. Treasuries rose, while a drop in commodities sent oil below $68 a barrel.

Equities and commodities retreated after the World Bank forecast today the global economy will contract 2.9 percent this year. That compares with a prior estimate of a 1.7 percent decline. Growth is expected to return next year with a 2 percent expansion, lower than the 2.3 percent prediction about three months ago.

Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. This is a clue that the stock market is already expensive. Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies’ prospects.

The number of Americans filing claims for unemployment insurance unexpectedly fell last week to the lowest level in three months, a sign the worst of the job cuts may be over.

Initial jobless claims decreased by 34,000 to 601,000 in the week ended May 2, the fewest since late January, from a revised 635,000 the prior week, the Labor Department said today in Washington. The number of people collecting benefits climbed to 6.35 million the prior week, the 14th consecutive record, showing companies are still not hiring even as staff reductions abate.

The way for you to cut the amount of fuel you consume for your car is called hypermiling. It’s a term that is widely talked recently. During this recession, saving fuel can save you money. Since most of us rely upon our vehicle to get us around we need to make it go with less fuel. Several ways to save gas are:

1. Driving habits is very crucial to save fuel. You need to stay at a constant speed as much as you can. Even if you are in a hurry, driving fast and slowing down in traffic won’t save you very much time. Aggressive driving doesn’t get you any faster, yet it is costing you more fuel than it should to arrive at that destination.
2. Turn off your air conditioner if you can. This is a very big waster of fuel for your vehicle. For example, in the summer you can run errands early in the morning, to you won’t be relying upon the air conditioner to keep you cool.
3. Check your tires on a regular basis to ensure they aren’t wearing unevenly or needing to be replaced. It is also important to check the amount of air in each of the tires. You must have the right pressure for your tire.
4. Vehicles that aren’t well cared will end up using more gas than those well maintained. Don’t wait until your vehicle stalls on the road. Preventative work will save you money. If you can hear noises that it wasn’t making before you need to have a mechanic check it out. This can prevent you from more serious damage.
5. Make sure you take the time to get your oil changed regularly. It is a good idea to have your oil changed every three months or every 3,000 miles. Go by which one of them takes place first. It is vital to use a good quality of oil and the correct grade of oil for your vehicle.
6. Replace your air filter every 3 to 4 months. Some people find that it is just as effective to take theirs out and to blow it out with pressure from an air compressor.
7. Avoid traffic jam when travelling. Do your best to avoid bottleneck areas, near road construction or driving at rush hour. You can find alternative roads to avoid those heavy traffic roads. Even if the alternative is one that is several more miles, it can end up saving you fuel in the long run.
8. When you are not using your vehicle, turn it off to save you on gas. Many people let their car idle to warm up in the winter and then to cool down in the summer. You can place your vehicle in a garage so you don’t have to let it sit outside collecting frost or heat.
9. The heavier your vehicle is the more gas it is going to use. You can remove things on it to lighten your car to save money. You can remove unimportant things in your trunk like heavy tool box, heavy speakers and sound systems.
10. Change your car into more efficient vehicle. You will notice that many vehicle manufacturers are offering more compact and medium sized vehicles, which saves more money on gas.
11. Do try to carpool as much as you can to and from work. If you can trade of weeks of driving with a co-worker you will cut your costs in half.