Economy is starting to roar

Economy's gears starting to spin

Perhaps the title of this post is a bit exaggerated because usually when someone uses ‘economy’ and ‘roar’ in the same sentence then it means that things are going extremely well. However, I am not being sarcastic about the economy’s performance either. The reality is that the economy is clearly starting to recover and although we can see some definite worry spots within it, we can also see a reasonable progression to really good times once again.

The unemployment figure has not dropped very much in the U.S. (and Canada for that matter) but, that is usually a lagging indicator. Also, the debt that the U.S. government has taken on due to saving the economy, on top of the trillions it already had is very worrisome and must be dealt with starting in the not too distant future. However, even with these concerning areas and with some other ones as well, most of the figures and indicators have more of a positive story than a negative one.

The stock market, which is often seen as a leading indicator is doing very well. Most companies that had big problems during the recession now have much better balance sheets than before and most show a steady rise in business. Other companies that had little to do with the recession other than being an innocent victim are seeing their quarterly profits come back and rise. Apple’s stock reached a record high on Tuesday and many other companies have been reporting equally good news. The pace of the good news is also picking up which means that slowly the economy is building back up and picking up the pace in the process.

For those who are still looking for employment, it should really not be much longer before multiple good positions become available. I am hearing every day now about companies, both small and large that are looking to hire. For those who are in business or about to be in one, it is very foreseeable that in the near term sales will pick up and for the medium term, you should be ready for the growth. In business it is one of the worst feelings to have sales but not have inventory to satisfy the demand. Therefore, be ready with your inventory levels.

Hopefully the news continues on this pace and the economy will end up recovering completely and will go in to a strong phase of expansion for all industries. Definitely, we are all better off today than we were around the same time last year.