More Growth Ahead - 09/28/09


For Immediate Release
8:00A.M. PT, September 28th, 2009
Fredrick Bond, SVP/Mortgage Division Manager
805.369.5138
fbond@heritageoaksbank.com

(San Luis Obispo, CA) - Many economists believe America’s recession is over, and that expansion will resume soon. A strong growth rate of 2.4 percent could occur in the third quarter, says Macroeconomic Advisers, a respected forecasting firm.

Often we don’t hear about recoveries until they’re many months old. A big reason is that the media report economic data that’s already old. Retail sales are reported weeks after that spending took place. But finding out how strong sales were 45 days ago doesn’t tell us what’s happening in stores now.

Many economic figures also are “lagging indicators” which pick-up only after growth has recovered. Consumer spending will increase once households find their finances are improving.

IMPORTANT STEPS

Few economists expect a huge shot of growth right away. Yet turning the corner allows our economy to slowly regain its footing. Companies will see their sales going up and decide to add more workers. Consumer spending then grows, since more people will have jobs.

Over time many households become interested in purchasing their first home, moving up to a better house, or finding a great vacation or retirement property. We don’t know for sure where we are in this process. But it’s inevitable that positive forces will re-emerge – and some people could be surprised at how soon that occurs.

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