More Positive Economic Indicators
More economic indicators for the legal profession show that the recession is ending and that a recovery is beginning.
Law firm marketing professionals point to several positive indicators:
· Fed Views Recession as Near an End. On August 12, 2009, the Federal Reserve said that the recession is ending and that it would take a step back toward normal policy.
· Unemployment rate does NOT increase. Despite widespread predictions that the unemployment rate would crest over 10%, it held steady at 9.4% as of August 7, according to the federal government.
· U.S. jobless claims fall sharply. The number of U.S. workers submitting new claims for jobless benefits fell sharply in early August, fanning hopes the fragile labor market was on the mend and that the broader economy was stabilizing. Initial claims for state unemployment insurance fell 38,000 to a seasonally adjusted 550,000 in the week ended August 1, the Labor Department said on Thursday, beating market expectations for a drop to 580,000.
· Housing prices increase. Houses have finally become cheap enough to lure buyers, according to a new report released on July 28. That, in turn, is stabilizing prices, generating hope that the real estate market is beginning to recover. For the first time since early 2007, a composite index of 20 major cities was virtually flat, instead of down. “We’ve found the bottom,” Mark Fleming, chief economist for First American CoreLogic, told the New York Times.
· Stock Markets are Up. The Dow Jones Industrial has closed above 9,000 by the end of July, its highest point for 2009. The broader Standard & Poor's index is up 11% for the year.
· Pent up consumer demand. The cash-for-clunkers program brought 120,000 new-car buyers into car dealerships from July 1 to early August. According to the New York Times, this reveals pent-up consumer demand, which is a sign of economic recovery.
· 3% growth in 2010. An industry forecast by First Research Inc. (a service of Hoover's Inc. online database) shows that growth in the legal sector stabilizes in 2009 and turns into 3% growth in 2010. For the full story see the LawMarketing Portal at www.lawmarketing.com.
