Economy Improves - Faith Increases: In our CRM consulting business we come across many different industry segments in the small to medium-sized category with 5 to 500 employees. From what we are hearing there is a slow and definite improvement in the American economy. A recent VP of Sales mentioned to us that "bent up demand is now getting satisfied" by consumers from his dealer network. Another business owner stated he needed to hire more sales reps and related installers for his products.
During this Great American holiday it was wonderful to come across a web site that pulled together 15 charts that will restore your faith in the American Economy.
Summary points noted are:
- Job growth has been solid. Since the end of 2011, the US has averaged about 185,000 new jobs a month.
- On the whole, inflation-adjusted private wages are going.
- What's driving wage increases has less to do with surging pay and more to do with decreasing inflation. That decline in inflation is partly thanks to dropping gas prices.
- Due to a combination of foreclosures, refinancing and paybacks, the debt burden of US households looks much more manageable.
- Meanwhile the housing market is healing. Home sales are picking up, even though there are far more pre-crisis peaks.
- Oil and gas jobs abound.
- Rebounding housing and stock values have boosted US household net worth to record heights, though there are some serious caveats.
- With consumers buying more, more retailers are hiring (see below).
As these results appear, US consumers are feeling more confident. And when consumers feel better, they buy stuff. Car sales, for instance, reached a post-crisis high last month. With consumers buying more, more retailers are hiring. Likewise, bankers are seeing more demand from borrowers.
Finally a personal note: I'd like to show my gratitude of my 7th Great grandfather who fought in George Washington's Revolutionary army and lived to tell about it. He later moved to Michigan to gather animal hides for the Astor family business in New York. Later his family moved to settle the fertile land and became farmers in Southwest Michigan less than 10 minutes from where our business resides.
Thank you grandpa, Zacheus Wooden... you were a pioneer and provided your family well in the late 1700's!