3 Ways to Know the Economy is Ready to Rebound.
Posted: July 29th, 2009 | Author: Joe | Filed under: Economy | Tags: economic recovery, Employment, Housing | No Comments »1. Business sentiment is up!
When business sentiment is up, employers hire. When people get jobs, they have more income and buy more stuff. It’s that simple. Watch for the Institute for supply management’s (ISM) latest Non-Manufacturing ROB report
You want to see an index of 50 or more, that stays for a couple of months. As of this writing it is 49.8%.
2. Increase in temp hiring.
When the economy picks up, the first jobs created and filled are temp jobs, as employers try to fill demand but hold off on the commitment involved in a full time hire.
Keep an eye on the ASA Staffing index. This shows the change in the number of temporary hires. You want to see a rise for 3 consecutive months or more. So far, the index has been hovering around 71. We’re not there yet on this one.
3. Housing supply shrinks.
The housing mess got us into this recession, and the glut of homes available will have to lessen before we can fully rebound. Keep an eye on Inventory data from National Association of Realtors. You want to see existing home sales up.
