People around the country have grown accustomed to being shut ins over the winter as cold weather ravaged many regions, which had a dire effect on some sectors of the economy. But things are starting to thaw out, and the economy is set to improve, Bloomberg reported.
Increased retail sales and new car sales, paired with decreasing jobless claims, are sure signs that spring is having a positive effect on the economy and will continue to do so as it marches on. In fact, economists think the country’s economy and jobs will return to pre recession levels before there are any further warning signs of another economic crisis.
The U.S. Census Bureau announced on April 14 that March’s retail and foodservice sales increased 1.1 percent – exceeding economists’ expectations that they would only grow by 0.9 percent. The 1.1 percent growth is the largest month to month increase since September 2012.
Ten of 13 sales categories that are measured, from automobiles to apparel, increased. The gains don’t affect first quarter numbers, but they likely will have a significant effect in the second quarter.
There were 16.4 million new car sales in March, which is the most since June 2006. An automobile is a large purchase, and the increase in sales in March showed that many consumers were waiting out frigid temperatures and dangerous road conditions before they hit dealerships to buy a new car.
“It was very encouraging to see the momentum continue to build as the month progressed,” Erich Merkle, a U.S. sales analyst at Dearborn, Michigan based Ford, said in early April, according to Bloomberg. “Is there more out there? I guess we’ll see when the market comes to us in April.”
About 300,000 Americans filed for jobless claims in March – the lowest level since May 2007, the U.S. Labor Department announced on April 10. As more people are finding jobs, they likely also will use their new paychecks to make purchases – whether cars, food or furniture – and continue to further boost the country’s economy.
Small businesses seeking more working capital to cater to growing demand from consumers – whether they need to hire more employees or expand their physical operations – should look to nontraditional lenders like National Funding. Owners approved for small business loans from such lenders will enjoy more flexible terms in paying back the funds.