Saturday, December 4, 2010
With the smell of recovery back in the air, some business owners are starting to ask themselves: “What size business loan can I get?” The demand for consumer goods is increasing and it's the early bird that's going to catch this juicy worm. Typically, the severity of a recession indicates the level of dampened demand that comes bounding back upon recovery and merchants are now expecting to make up for lost time. It's got some experts so cheerful that they're now figuring that we may just be done with any “lost decade” scenarios that other pessimists echoed when things looked kind of bad. What's the reason for this exuberance? While unemployment is still high, there are signals that things are turning around.
Black Friday was a resounding success for retailers, with figures showing that record number of people turned out and business experienced the best sales since 2007. This is a very good indicator of pent-up demand that is starting to loosen, just in time for businesses to become profitable before the end of the year. Since Black Friday is just the start of the holiday shopping season, if the trend continues it bodes very well for the financial health of the consumer and thus the economy.
Fewer Unemployment Claims
The economy may not be creating enough jobs to put the 15 million unemployed back to work, but at least there are fewer unemployment claims being filed. This could be a lessening of layoffs or the fact that people are becoming employed slowly, but steadily.
Business Travel Up
Another great indicator that economy is on the mend is the rise in business travel. That means business is gaining confidence and deals are being made both domestically and internationally. It's also good news for hotels and restaurants that are near airports or that offer business travel services. In fact, the hotel industry has seen a sharp increase in bookings and the price per room.