The nation’s economy contracted in the second quarter of this year but posted its best performance since the second quarter of 2008. Leading economic indicators suggest that an economic recovery is taking hold. The recession in the United States appears to have ended sometime between May and July 2009, although the recovery will be sluggish. Jobless rates continue to increase, although at a slowing rate. Economists agree that this will be a largely jobless recovery and that future instability in commercial real estate markets will hold back the availability of credit in the months ahead, constraining economic growth.

Ohio’s financial position for the month of September remained stable as revenue performance met estimates, supported by both income tax withholding and sales tax receipts, somewhat buoyed by the popularity of the “cash for clunkers” federal rebate program for new car purchases.

This month marks the first month for the state to report to the Federal government on the funds provided by the American Recovery and Reinvestment Act (ARRA). Reporting on the distribution of the ARRA funds was submitted by October 9, 2009 to the federal government. Ohio is expected to receive $8.2 billion from ARRA, which will be dispensed over three years. The state must continue to report to the federal government on quarterly basis information about how the money is being spent. So far this program has distributed $1.6 billion already on programs to help Ohioans. Click here to review Ohio’s receipts and expenditures of the American Recovery and Reinvestment Act funds summarized in the September monthly report. Also, a regularly updated link to the reports being submitted and revised for recovery.gov is HERE.