The economy is picking up steam with positive markers in
trade, manufacturing, consumer confidence and service industry growth. Multiple
markers help encourage positive feelings among consumers and investors alike.
As the market continues to show positive signs it will naturally influence the
available purchasing habits of consumers and opportunities of investors. Even though the positive signs are only blips
on an economic radar they do lean toward potential new growth in the near
future.
America is making its way back to global dominance as the
trade gap narrows and worldwide demand for American products ticks slightly upward.
It is a small start…but it is a start. According
to new numbers from the Trade Department the trade gap shrank 3.6% to $40.4
billion dollars from the prior month of $41.9 billion (1).
This small adjustment in the trade gap highlights that there is some potential
momentum in the market.
Exports increased 2.1% to $193.9 billion in March (2).
This is good news for manufacturers and
investors who seek to find higher rates of return. A small improvement
in export growth indicates that there are opportunities within the market that
are not fully realized or explored. Additional investment can help support those numbers to
turn investment into profitable output.
Furthermore, information from the Institute for Supply
Management also indicates that there is acceleration in manufacturing growth
while the Labor Department states that 288,000 nonfarm roll jobs were added
last month (3).
As production in manufacturing increases
so does the likelihood of greater employment opportunities.
Exports increased $3.9 billion in capital goods, industrial
supplies, and automotive related products. Imports also increased $2.5 billion
in consumer goods, capital goods, and foods, feeds and beverages. The overall trend on the graph leans to the trend
that growth in exportation is rising over time even though the individual
quarters are bouncing from positive to negative.
Consumer confidence
rose highly within the first quarter of 2014 sparked by a 6% increase with 44%
of Americans feeling positive about putting money in the bank again (4).
The importation of personal products is
a direct result of positive impressions in society as consumers make their way
to the stores. Consumer confidence is also rising in other places creating an
upward push on the demand for products and services.
When consumer confidence rises people generally feel better
about their prospects and are willing to spend more of their hard earned
capital. This can create additional support for increases in manufacturing and
service industry development. The service industry also saw a few percentage
point rise around the first quarter thereby complementing other sectors (5).
The countries that capitalize on supplying to the needs of the global market
are more likely to see greater rebound. Before one can supply to that market
they must understand the global market needs and put that within a progressive
framework.
