Signs of a Strengthening Economy

moneyProgressive economic development soon followed a global financial crisis. Different opinions from consumers and professional economists form the basis of this theory. The insights are initially anecdotal, thereafter, shifting into a scientific analysis after a short time. Some of the insights below give an indication of the betterment of the economy.

1. Consumer borrowing thriving. Consumer loans increase in a weak economy. The Wall Street Journal featured an article on an increase in consumer borrowing in non-real estate loans that include home mortgages by $2.4 trillion. 7% of this overall amount makes up larger ticket items such as autos, boats, washers, etc. as consumers are viable to purchase larger items when interest rates go down. This prompts light vehicle sales up to 22.5% this year.

2. Increase in the stock market performance. – As the Dow and S&P yield positive results, consumer trends tend to increase. The stock market is interrelated to the economic performance.

3. Creation of jobs. – Hiring and hours worked in the private sector development give a nudge for economic development.

4. Increase in real estate sales. – The National Association of Home Builders provides reports on home sales. The housing market index remained at a level of 16 in January. The lowest dipped to 9 in 2009. Thus, real estate development ushers in the start of an economic progress.

5. Rise in car sales. – cars are the things in life that consumers prioritize to buy when the economy looks good.

6. Retail Sales – when the economy begins to look good, consumers begin to spend their extra income on miscellaneous leisure expenses such as trips to the movies, Starbucks, etc.

7. Pasta indicator dip. – decrease in pasta sales indicates a softer economy. If pasta dip, the economic progress increases.

8. Increase in carbon prices pertains to increased consumer spending, indicating a progress in economic development.

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