Report: brighter outlook for NYC’s economy

A new report says New York City’s fiscal outlook isn’t as bad as it was last spring.

The report by the city Independent Budget Office says the financial sector has particularly turned around.

It projects Wall Street profits of $59 billion this year, calling that a “dizzying U-turn” from the unprecedented losses of 2007 and 2008.

The IBO also says tax revenues are better and job losses aren’t as bad as forecasters had predicted six months ago.

Last May, IBO forecasted the city would lose 254,500 jobs. It has now revised that to a loss of 157,200 jobs, from peak employment in 2008.

Tax revenues are projected to reach $35.5 billion this fiscal year. The report says that’s $649 million more than in fiscal 2009.

Copyright 2009 The Associated Press.