Amid Confusion, There are Definite Signs of an Improving Economy

Among all the conflicting economic reports, there are clear signs that things are looking up.

Contrary to the latest government report on total jobs, the payroll processing company ADP recently reported that the number of jobs created by privately held businesses grew rapidly in June.  The figure was much higher than expected and more than four times higher than the prior month.

According to ADP, smaller businesses led in job creation. Small businesses, defined as those with fewer than 50 workers, added 88,000 jobs in June. Medium-size businesses, those with between 50 and 499 workers, gained 59,000.  Larger privately held businesses added 10,000 jobs.

In a separate report, the Labor Department said the number of first-time filers for unemployment insurance fell by 14,000 in the most recent week, more than economists had expected.

In another positive indicator, luxury car makers posted record sales in the first half of the year and industry analysts expect growth to continue in coming months.

BMW is the world’s best selling luxury car.  “We have just achieved another record month in sales and the best six months in our company’s history,” said Ian Robertson who is BMW Vice President of Sales.

Audi overtook Mercedes as the world’s second-largest luxury car maker by sales volume in the first half of the year.  “The first half of the year was clearly better than we had expected,” Audi sales chief Peter Schwarzenbauer said.

Mercedes also reported strong sales growth and still generates more average revenue per vehicle than BMW or Audi.

In yet another encouraging sign, personal bankruptcies are down.  After steadily climbing for several years, the number of Americans filing for bankruptcy is declining.  The number of bankruptcy filings nationally in June was down by 6 percent from May.

Apparently it takes the media a while to report these things, as good news is never as attractive to them as bad news.

#   #   #

William Bruce is an Accredited Business Broker and Appraiser assisting buyers and sellers of privately held businesses in the transfer of ownership.  His practice includes consulting services nationwide to business owners and buyers. 
 
His article on the top three issues involved in the sale or purchase of a business may be read by clicking here.  He may be reached at (251) 990-5910 or by email at WilliamBruce@bellsouth.net.
 

About William Bruce

President, American Business Brokers Association / Business Broker and Accredited Business Intermediary assisting business buyers and sellers with the transfer of ownership since 1986 / Author: How to Buy a Business.
This entry was posted in Gulf Coast Regional & National Economy and tagged , , , , , , , . Bookmark the permalink.

3 Responses to Amid Confusion, There are Definite Signs of an Improving Economy

  1. twtalbot says:

    On a local level, there are definite signs of an improving economy. There are more new commercial constructions started and more “now hiring” signs in store windows. Business owners and retail consumers are beginning to make more decisions, but the decision cycle is still slow. – Todd Talbot

  2. Hey Todd, thanks for visiting. Where are you located?

  3. Jim Phillips says:

    What seems to be the norm in today’s economic climate, the small business people are faced with conflicting information, on which they use in making a decision. I don’t know who’s numbers are right and who’s are wrong, I just see many small businesses sitting tight and doing nothing. My company provides financing options for small business to purchase equipment. It is just not happening in any great abundance.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s