Since the 2008 financial crisis, corporations and their management teams have been eyeing the economy very carefully. The US has been in a very slow recovery, but a recovery nonetheless. There is still a lot of uncertainty in the market, which has many CFOs concerned about how aggressively to pursue expansion, investment, and other economic activities.
As we near the end of 2012, you have no doubt been preparing and planning for what your company will accomplish next year. Recent news and reports show a brightening picture for 2013. This is great news for an economy that has shown only limited improvement over the past few years.
What’s in Store for 2013
As unemployment slowly continues to edge downward, there is some cautious optimism building for the new year. Inc.com has a great infographic that displays the projections for the coming year.
Let’s take a look at some of the most notable positive changes. Two of the biggest industries in the US, the auto and aerospace industries, are projected to have 5% and 16% growth respectively. Durable goods orders and business capital goods orders are on a strong upward gain, as well. Consumer sentiment is improving, and so is business owner optimism. Lastly, the real estate market is improving from 6% to 20% in many parts of the country, depending on the specific market.
All of these signs indicate more robust economic activity for the future. This will mean more spending, more purchasing, and a more confident and optimistic outlook in 2013. It might be the right time to start looking into investment and expansion as the economy starts to recover more earnestly.
More Good News for 2013
Don’t just take Inc.com’s word for a better economy in 2013. Kiplinger, a trusted name in economic analysis, has a solid article covering the important factors in their prediction for a better economy next year. Kiplinger sees unemployment reaching a low of 7.5% at the end of 2013, steady oil prices, a 5% growth in retail sales, and a 4% gain in business spending, among other indicators. Interest rates are likely to only rise slightly, and inflation will likely not be a problem.
“Look for considerably more pep in the second half of the year,” says Kiplinger. That is, unless political gridlock over the fiscal cliff and budget ceilings greatly damages the US economy. Still, Kiplinger believes that “Congress will take at least the minimum steps necessary” to prevent damage from occurring.
What are your plans for 2013? How optimistic are you for the new year?