Economy shows resilience: liberals befuddled as jobless rate falls, the dollar gains strength, the unemployment rate dips, and food prices ease

The latest economic news surprised the pundits, as the economy showed signs of resilience. AP:

The economy showed off unexpected signs of resilience Friday as job losses slowed, the dollar gained a bit of muscle for a change and there were even indications that food prices may be easing. The unemployment rate dipped, though that may not last.

The latest barometers flashed encouraging signs that the economic slowdown may not be as pronounced as some had feared. Still, there's much caution — about housing, credit and other problems.

"Economic or financial conditions could take an unexpected stumble at any time," warned Stephen Stanley, chief economist at RBS Greenwich Capital.

Employers eliminated 20,000 jobs in April — not nearly as many as the 81,000 in March, and the fewest monthly losses so far this year, the Labor Department reported. The unemployment rate dropped to 5 percent, from 5.1 percent.

Stresses were still evident. It was the fourth straight month that employers cut jobs — bringing total losses to 260,000.

Many analysts were bracing for much more carnage. Yet, the new figures "can't be taken as a signal that the economy is out of the recession woods," said Nigel Gault, of Global Insight.

Meanwhile, Democrats claimed Bush was not realistic and called for a second stimulus package to include higher unemployment benefits.

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Above photo (AP Photo/Jeff Roberson) shows President Bush delivering a speech on the economy in Maryland Heights, Mo. on May 2.