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Looking at economic numbers that are presented to us every day, we see evidence that a recovery is beginning to takeeconomic_recovery root. But, the bad news is that a few key indices show little improvement. Some parts of the economy will hold any recovery to a slow crawl. Maybe a slow and sure recovery is a welcome thing, however. It certainly is better than none.

The Big Three

The three indices that are among the best to be used to gauge economic recovery are unemployment or underemployment, a volatile stock market, and weak consumer demand at retailers. These three signs continue to point to a poor economy for months to come.

Bright Spots

There are however, some bright areas in which encouragement can be found when looking at the economic picture.

Consumer Attitudes are Up

New home sales moved up in August which continues a five month streak. There are very good buys to be found in the existing housing market also which makes it a prime time to buy if you are in a position to do so.
Also, numbers show that attitudes about the economy are up to their highest point since January of 2008. If you trace the numbers back to that point, you will find that even though the bottom had yet to drop out of the economy, consumers had ominous feelings about their finances and, for good reason. The bailouts on Wall Street were just a few months away and foreclosures were not as high as they were today.
While these bits of good news does not spell recovery by themselves, it does show that people believe that we have reached a bottom and will begin to move upwards soon.

Manufacturers are Ramping Up

Even though orders for durable goods were down in August, hiring has increased for part-time workers as manufacturers gear up for additional demand for products. Inventories have been depleted which is the reason for the ramp up, but following on the heels of a ramp up like this could be a full-fledged recovery in which orders will begin to be seen for durable goods once again.

This adds to the sentiment that is already seen as a positive force moving forward. It appears that families are treading water until things improve. They are doing what they have to just to survive and ride out the financial storm. The best advice is to sit still and watch it unfold before you.



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