Some Good Economic News For 2010 — Really!

I will be publishing the results of my second annual practice performance survey tomorrow and wanted to lead off with some surprisingly good news on the general economy.

According to an article on page B3 of the New York Times, February 6, 2010 edition, a global recovery in the manufacturing sector has started and appears to be accelerating.

In fact, manufacturers around the world are reporting an increase in output and new orders, after both plunged during the credit crisis of late 2008 and early 2009.

Recovery Could Be Stronger Than Expected

The sharpness of the rebound is unexpected and could indicate that the American economy is not in line for a slow recovery as predicted.

Economic strength was also reflected in the US gross national product estimate for the final quarter of 2009 with an annual rate of 5.7%. That is the fastest growth for any quarter in more than six years.

Unemployment Is Down, But Still High

Last Friday, the US Labor Department reported that the unemployment rate fell from over 10% to 9.7% in January.

While the overall entire economy lost 20,000 jobs, there was an increase of 11,000 jobs in manufacturing employment — the first such gain in three years.

Yes, 9.7% unemployment is still quite high. That number will be a big concern in 2010 as consumer spending will be needed to drive a large part of the recovery. At least consumer confidence is up over last year.

I don't have a crystal ball, but it is great to hear the national press starting to report that things are looking up.

In tomorrow's blog, I’ll talk about how my readers’ practices performed in 2009 and what your outlook is for 2010.

Regards,
Jerry Hayes, OD

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Disclaimer: The information and opinions contained on this site are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2010 Jerry Hayes, OD. Not to be reproduced without written permission of the author.