Moderate gains were achieved in the manufacturing and construction sectors in the U.S. notwithstanding the persistent problems in unemployment and the rising concern regarding the ongoing debt crisis in Europe.

Reports gathered by the Associated Press from the Institute of Supply Management (ISM) revealed that the manufacturing industry opened out in September compared to August, for the first time in three months. Spending in the construction business also went up mainly because of local initiatives and car sales likewise increased.

These joint reports indicate that there is a possibility to avert a second recession but the economy will keep on struggling.

The country has been adversely affected by the European crisis unlike the Asian economic downturn in the past when U.S. economy was practically formidable.

Regrettably, the U.S. economy today as described by several economists is "flat on its back and facing the specter of another recession even without the headwinds of Europe."

Already, the country's exports to the EU, which is a primary trading partner, have dropped significantly.

Economic experts claim that it will be difficult for the U.S. government to launch a continuous effort to generate employment opportunities at this time.

A more transparent appraisal of the economy is expected on Friday when the government hands out its job report for September.

While employers throughout the country added between 50,000 to 100,000 jobs, this is deemed insufficient to be at par with population growth.

The Unemployment rate is seen as staying at 9.1 percent for the third straight month.

Observers say that economic leaders of the U.S. should focus on capital reserves to protect financial institutions from the threat of deteriorating confidence.

The country's economic managers are believed to be watching carefully bank capital reserves although the discretion of banks in paying dividends at this time remains in doubt.

J.D. Foster, an analyst in his paper, the European Financial and Economic Crisis: Origins, Taxonomy and Implications for the U.S. Economy, wrote that " One rather nebulous issue for the United States arising from Europe's troubles is that once again the United States, despite all its troubles, is perceived as a safe haven for capital."

"Given the current weakness in the U.S. economy and the Federal Reserve's current policy of maintaining very low interest rates and its expected attempts at driving down long-term rates in particular, these interest rate pressures may actually be benefiting the U.S. economy today," he added.