Economy finally seems to be leveling off, but more job losses, other bumps still ahead

WASHINGTON (AP) -- At last, after a nerve-racking six-month descent, the economy appears to be leveling off.

But don't assume the bumps are over.

Stock investors, shoppers and home buyers are less jittery. Once-frozen credit markets are slowly thawing. And economic indicators that had been going from bad to worse are showing signs of stabilizing -- though still at distressed levels.

There were fresh signs Thursday that the full force of the recession may be petering out: a strong profit forecast from Wells Fargo, a drop in unemployment benefit filings and several retailers predicting solid April sales. On Wall Street, the Dow Jones industrials rose nearly 250 points.

Still, with unemployment rising, it will be at least several months before the country's economic engine pops into a growth gear. Job losses -- and the fear of them -- act as a headwind against consumer confidence and spending, which account for more than two-thirds of the U.S. economy.

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