THE ECONOMY.(TO THE POINT)

It's "plausible' bumpiest is over

With tax cuts set to boost consumer incomes and the impact of interest rate cuts yet to be fully felt, the economy may have passed through the worst already, Treasury Department economist Karen Hendershot said. Lower energy and wage costs will also help. But the pace of recovery in the business sector is uncertain, she said.

Business activity slowed again

Weak demand for autos and tech hurt the International Strategy & Investment Group's company survey index, which fell to 41.7 in the week ended Friday, the third straight fall. It was at 41.9 a week ago. The four-week moving average fell to 42.5 from 42.9. Manufacturing slowed on weaker sales in Europe and Latin America, ISI said. Retail rebounded as stores cut prices to clear stocks.

Job applicants outnumber posts

It's the first time in years. Some recruiters even say the jobless rate is higher than the official 4.5%. "It could just be that they don't count you as unemployed until your severance package runs out," said Tim Doherty, president of Doherty Employment Group. But mortgage companies have been hiring.

Retail sales up on tax rebates