Families adjust to economy's mixed signals - 13 WTHR Indianapolis

From jobs to auto sales, the US economy is giving us mixed signals.

The Labor Department says U.S. employers created the fewest number of jobs in a year in May. That increased the unemployment rate to 8.2 percent.

But then, the nation's big three automakers - General Motors, Ford and Chrysler - all are reporting big sales gains in May. However, Wall Street ended on a down note Friday, as the Dow dropped 274 points to close at 12,118.

It is something of an economic mess each family is trying to clean up. While investors lost billions of dollars on Wall Street, Michael Jenkins saved a few bucks, buying a nearly new toy for his son at a garage sale.

"Five dollars for that versus 25 at the store, no way," Jenkins said.

Families are trying to find their way through an economy that keeps changing directions. The Stockton family holds yard sales. With five children, it needs the additional room as well the additional cash.

"It's not getting any better than I can see," Mark Stockton said in a driveway crowded with toys, clothing and lawn mowers. "It is not getting easy yet."

And it is hard to understand.

U.S. auto sales are the best they've been in almost three years. Chrysler is up 30 percent, Ford up 13 percent and GM up 11 percent from last May. But other parts of the economy aren't recovering as quickly. Unemployment is up and the stock market is down almost 8 percent in one month.

Europe's economic and political turmoil is an ugly wild card.

"We are seeing, beginning to see, what the absolute fallout could be from what's happening in Europe and the debt crisis, and it is not pretty," explained Dr. Rachel Smith, professor of finance at the University of Indianapolis School of Business.

Economic uncertainty appears to be the new normal families are learning to live with. Angela Corkwell stood in yard sale, surrounded by her deal-hunting children.

"I'm trying to live smart. I am trying to live within my means," she said. "You never know what tomorrow brings."

Simple, but good advice, say financial experts.

"Make decisions to keep yourself fiscally responsible," said Dr. Smith. "Don't take out a big mortgage, don't go out on a limb."

If you don't need to spend the money?

"Don't do it. Wait," she added.

However, families living paycheck to paycheck, hanging on for years now, are weary of waiting for real economic recovery.