Last month, I wrote a blog post about some of the “glimmers of hope” in the economy, echoing statements made by the President. Since then, we have seen more evidence that the economy has turned some sort of corner. That is not to suggest that things are terrific, but it does seem to indicate that perhaps the bottom has passed. Here are some examples:
- A majority of economists surveyed by the National Association for Business Economics (NABE) see the economy turning around by year’s end, albeit with slower growth. (NABE members can read the full survey here.) This, of course, is consistent with statements made by Federal Reserve Chairman Ben Bernanke earlier in the month.
- The U.S. Small Business Administration’s lending programs, 7(a) and 504 loans, which have been down drastically in terms of year-to-year figures, have both risen 25 percent since March 16, reflecting a turnaround in their fate.
- Several surveys have shown increases in overall optimism. We have seen rises in the National Federation of Independent Business’s index of small business optimism and the University of Michigan’s consumer sentiment survey, for instance. Each of these indices, however, are well below their traditional averages.
- The Dow Jones Industrial Average was up 4 percent in the month of May, something that we all like to see, especially after the 54.5 percent fall we experienced when the market hit bottom in early March.
True, there are also some worrying signs (perhaps for another post), but it is nice to receive some good news for a change.
