For many people, 1993 was the year the economy began to turn around.
Big business continued to announce massive layoffs, but by the end of the year, the number of people applying for jobless benefits had begun to level off. Earlier in the year, the number had been growing by thousands each week.
Lower interest rates represented a big driver for the economy. Low mortgage rates, dropping into the 6 percent range in some areas, spurred thousands of people to refinance their home mortgages. The lower rates also spurred the sales of existing homes and the construction of new homes in most areas of the country. Sales of existing homes were up 2.9 percent in November, the highest rate of turnover since 1968.
Interest rates were the lowest they had been in 25 years. Inflation fears proved unfounded. The American Bankers Association said in mid-December that delinquencies on loans in the third quarter fell to their lowest level in ten years.
The year was a big one for mutual funds. Low interest rates paid by banks sent investors streaming into the mutual fund and stock markets in search of higher yields. The Dow Jones Industrial Average had gained about 500 points by mid-December.
At year end, all signs pointed to a successful Christmas shopping season. Many of the shoppers interviewed by CNN said they felt confident the economy was growing. Most said they were spending more money on Christmas even though some said their personal incomes had not gone up.
