Economy gains as businesses spend more, fire less

Businesses are growing more confident in the economy, investing in more equipment and laying off fewer workers.

By Christopher S. Rugaber, Martin Crustsinger | January 26, 2012 at 11:02 AM

WASHINGTON (AP) — Businesses are growing more confident in the economy, investing in more equipment and laying off fewer workers.

Government figures on manufacturing and unemployment claims released Thursday raised hopes on the eve of a report on how much the economy grew in the October-December quarter.

Still, 2011 ended up as the worst year on record for new-home sales, a reminder that the economy has a long way to go.

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