The prediction delivers the sign that the economic recovery may attain strength in 2011, however it seems that this prediction doesn’t give enlightenment over the fact that most Americans may not feel it. As you know that the bright cloud over US economy was driven into better days learning that investment on equipment and software and consumer expenditure was stable, also the exports rose.
But the convenient momentum was suddenly vanished because there were increasing debt problems in parts of Europe and government stimulus spending worn out. However, in the beginning of 2011, the newest economic indicators showed that the economy will get better in 2011, this prediction is strengthen by some analysts. Thus, there are some indicators that can be helpful in 2011.
The first indicator is for employees to have more hours working time. The average workweek for all employees on private non-farm payrolls was 34.3 hours in November, it is a rough uptick from the 33.9 hours occupied in the same time last year.
The increase in worker hours is important, particularly learning that many employers dramatically cut hours during the recession that began in December 2007 and ended in June 2009. The companied tended to maximize the working hours for existing workers before hiring additional workers. Therefore, a rise in the average workweek can improve the job growth.
The second indicator is corporate spending on the rise. The purchase of computers, communications gear, and other things alike done by companies may run slower after viewing spikes during many periods during the year and business investment in capital equipment recovered in November. US Commerce Department stated that a decline was smaller than estimated earlier and if the trend of climbing booking after declining one continues, the US growth will be positively affected.
Next, it is recognized that the amount of real money circulating in traveler’s checks, currency, savings deposits, money market accounts and so on was increasing and it reached 2 percent in 2010 compared to the previous year. The US Chief Economist with HIS, Nigel Gault, claimed that although the development happened is not unavoidably an essential move, this shows the indication that activity in private sector is increasing a little bit. The more transactions that occur means the more financing is needed so there will be more money spread in circulation. Last year the money supply was decreasing so there should be a positive sign happens this year.
The last indicator that gives positive sign for better future in economy sector is stock prices. The stock prices have been increasing as proved by S&P 500 that has been recovering from the 6-month plunge that tailed Lehman Brothers’ collapse in September 2008, enlarging its rally up 85% since its low in March 2009.
Bloomberg, quoting the average forecast of 11 strategies at Wall Street’s biggest banks, argued that the index is hoped to end 2011 at 1,374. Meanwhile, the Wall Street Journal exposed the news that 2011 can be the year that a large range multibillion-dollar initial public offerings return, succeeding a year in which most offerings increased less than $200 million.