Economists and market watchers aren't breaking out the party hats yet, but a slew of mildly positive data has pundits optimistic that we ll avoid a double-dip recession.

In his September market commentary, Phil Orlando said the summer soft patch, which generated negative headlines and fears of a sputtering recovery, is slowly giving way to an autumn pickup.

"While it's certainly early, we're encouraged that the economy appears to be putting the first positive, tentative steps in place toward improvement," he wrote in a Sept. 13 note.

Societe Generale U.S. economist Aneta Markowska looked at the 0.2% August industrial growth figure and pointed out that even though the pickup is waning, "production is only slowing, and evidence continues to argue against a double dip."

Of course, concerns remain about deflation and consumer confidence. The closely-watched core consumer price index reading released Friday showed costs stayed flat in August, except for a rise in food and energy prices.

Strategas Research Partners senior economist Don Rissmiller said the data would likely influence the Federal Reserve Open Markets Committee to hold off on further policy intervention when it meets this week. "There is neither large inflation nor deflation evident" in the August numbers, he wrote.

The pricing data curbed recent market momentum on a Friday, leaving the major indexes nearly flat. The Dow Jones Industrial Average gained 1.5% for the week, while the S&P 500 rose 1.4%.

It has been a long summer for market watchers. The S&P 500 has spent most of it locked in a trading range of about 1040 to 1160, about 12%.

"For those expecting some definitive change in direction, it feels like waiting for moss to grow on a tree," Doug Roberts, chief investment strategist at Channel Capital Research, wrote. "We have moved between bullish euphoria and bearish despair, something that we have seen reflected in investor sentiment."

Barclays Capital U.S. strategist Barry Knapp forecast the S&P 500 to finish the year at 1120. "With the inventory cycle and fiscal stimulus largely complete, the risks to the U.S. growth outlook have increased, though our base case is slow, not negative growth," he said.

On Wednesday, perma-bear David Rosenberg, chief economist and strategist at Gluskin Sheff, said the last three months of the year would likely show disappointing growth of less than 1%. "The economy is not yet contracting, but it s not exactly expanding that much either," he said.

There's growing sentiment that a bit more governmental oomph is needed for real improvement, though it's unlikely to arrive soon.

Andy Laperriere, policy strategist for the ISI Group, wrote Sept. 13 that a much-debated extension of some or all of the Bush-era tax cuts probably won t be decided before the election.

"The only player that will be ready for a deal will be the White House, which we expect will be ready to put rhetoric aside and cut a deal to avoid a massive tax hike," he wrote.

David Bianco, chief U.S. strategist at Bank of America/Merrill Lynch, had a different take on the tax and policy debate. In a Sept. 13 note, he suggested cutting the dividend tax rate to 0% and hiking the capital gains tax rate to 20% from 15%.

"A dividend tax cut should lower the cost of equity and also improve corporate cash deployment," he wrote. "We believe a good strategy for stimulating jobs is to boost the confidence of those who hire. A stronger stock market would quickly improve business sentiment."