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If the recession *is* over, what does that mean for your business?

Inquiring minds want to know - what does the growing economy mean in terms of the decisions you make and expectations you're setting.

2 Responses

  • Oct 30, 2009

    Member

    Wait, the recession is over? True, economists call the end of a recession at the first sign of an uptick in GDP, but that's like being at the bottom of a deep, dark well and calling yourself rescued after scrambling up two steps. We're a long way from being out of the hole.

    I'm not watching GDP numbers, I'm waiting to see how corporate CFOs feel about the economy when they set their 2010 budgets. Will they increase capital expenditures? Will they restore budgets to marketing? Will they plan on any hiring? That will tell you when the recession is coming to an end.

  • Nov 07, 2009

    President

    Perhaps some economy sectors are growing but others are still shrinking. Unemployment is still over 10%, the highest since the early 1980's. The unemployment figures are problematic themselves because no one tracks how many people have dropped off the rolls because their benefits have expired.

    In addition there is a new sign that things are not improving. Historically, gasoline prices (along with other petroleum and natural gas products) have risen during a recession even though there there is no dearth of product. We have watched the prices go down as things seemed to be improving. However, now they have started to rise weekly back to levels of a year ago. Does this signal a lack of progress or even a deepening of the recession? Only time will tell but one should remain very cautiously optimistic.

What do you think?

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