Signs The Economy Is Improving
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Transcript of Signs The Economy Is Improving
Housing market index on the rise
Recent data indicates that The Housing Market Index, which gauges demand for new homes, has been rising in the last few months.
Retail markets are improving
Large retailers are posting substantial profits, and retail sectors in Canada and the U.K. are showing clear signs of improvement.
Treasury Yield Curve primed to take effect
The U.S. Treasury department raised interest rates on bonds, and the yield of these investments should begin to pay out and have a positive the economy very soon.
Investor confidence is rising
Investors worldwide are coming out of panic mode and spreading more money around.
Steel demand from China is rising
China is one America’s largest economic partners, and recent stimulus packages have spurred more production in their steel companies. This means demand for steel will rise, which will benefit the U.S.
Oil prices are rising slowly
Oil prices have been rising gradually instead of precipitously, which means a huge, unmanageable spike in the near future is unlikely.
Banks did better than expected in stress tests
The recent stress tests showed that banks are a little more stable than projections indicated. This means that they won’t likely collapse, precluding potentially devastating ripple effects if things get worse.
Conclusion
While none of these signs indicate that we are out of trouble, they are all indicators that the situation has not deteriorated as badly as was expected 6 months ago. Are we out of the woods? Far from it. But these signs provide a reason to be optimistic, or at very least less pessimistic.