Good economic news starting to pile up

There have been at least two straight days of good economic news, not only from the U.S. but from around the world. On Wednesday we saw higher than expected job gains in the U.S., as well as, an improving manufacturing sector in China. That was followed by a slew of good U.S. economic news on Thursday including very good retail figures and improving jobs numbers. In addition, the worries over another European financial crisis calmed down as it appears that Portugal and Ireland will receive help.

These data points, as well as, others that tell a similar happy tale are all pointing to an improved recovery. It finally looks like we are about to enter a faster pace of economic recovery. We may even be in the beginning of it as we speak in the U.S., but the data lags real time so we will only know over the next few weeks or so. It is clear that jobs will be among the last areas to see meaningful improvement in the U.S., but it seems that even that is not too far away. Many large retailers have already said that they plan to keep some of the temporary seasonal hires on full time staff after the holiday season is over. This is very good news and is a good start to larger employment numbers for the economy as a whole.

The fact that retailersĀ are seeingĀ some of the best results since over two years ago suggests that people are more confident that their employment status is no longer in jeopardy and perhaps they are seeing higher wages, commissions and bonuses. This translates into more spending which will mean businesses will also spend more and this makes the economic wheel turn faster and faster. This is partly what everyone watching the economy has been waiting for and it looks like we are right on the cusp of a real up tick in the pace of this recovery.