It’s a slow, hard uphill climb, but Washington’s battered economy is slowly recovering.

A new report out from the state Economic and Revenue Forecast Council on Thursday, a preview of the June forecast, paints a somber, yet sort-of-optimistic, picture of recovery.  The economy has grown in each of the last three quarters, consumer sales have been stronger than forecast, and jobs are being created again, writes chief economist Arun Raha.  He adds:

“Consumers appear to be willing to spend in spite of the uncertain outlook.”

The economic woes of Greece and other European countries should have minimal impact on Washington, presuming “contagion” is prevented, the report says.  Job growth should pick up steam by late this year and throughout 2011 and beyond, Raha says.

Construction and manufacturing are posting slow growth, Boeing is “increasingly optimistic” and software layoffs “are now behind us,” the report says.

The next revenue update comes June 4.  Lawmakers filled a $9 billion budget gap last year and addressed another $2.8 billion shortfall this year. More revenue problems are expected in the upcoming January session of the Legislature.