Signs that the US Economy Will Improve in 2014

Americans have struggled to recover from the impact of the recession that took place in 2007 and 2008. Fortunately, the US economy is showing some signs of improvement, especially in certain sectors. Although the gross domestic product is not growing as fast as usual, some exciting things are happening in the manufacturing industry as well as in the healthcare and information technology sectors. All these things will affect managers and business owners as they make critical decisions.

Economist Steve Blitz expects the gross domestic product of the United States to grow by 3.5 to 4 percent in 2014, but this prediction hinges on the health of the global economy. Erin McCarthy of "The Wall Street Journal" reports that the world economy is expected to grow by 3.1 percent in 2014, so Blitz's prediction could be accurate. The US economy is expected to contribute significantly to this overall economic growth, especially since many analysts expect China's economy to experience very slow growth in 2014.

The mild inflation forecast is another sign that the US economy will improve in 2014. Both the Survey of Professional Forecasters and a panel from "The Wall Street Journal" predict a 2.1 percent increase in the Consumer Price Index, which provides data on how much money urban consumers spend on specific goods. A low-percentage increase of the CPI means manufacturers, retailers, wholesalers, and service providers have not increased their prices substantially. Business professionals should keep this predicted CPI increase in mind when determining their prices for 2014.

Job creation is another sign of a growing economy. Economists from California State University, Fullerton, recently released their annual economic forecast. The report contains a positive outlook for the US economy because of the expected decrease in the unemployment rate as well as the increased number of new jobs available in a variety of industries. Southern California is just one example of a growing economy in the nation. This region, which includes Los Angeles and San Bernardino, should see another 142,000 jobs in 2014. The housing market has also improved since the recession ended, creating jobs for construction workers, real estate professionals, architects, landscapers, and other professionals involved in building or selling commercial and residential real estate.

The US economy was slow to recover after the recession, but the outlook is positive for 2014. Economists predict a moderate increase of the GDP, mild inflation, and a lower unemployment rate for American workers. Entrepreneurs and business managers must be aware of these trends when making decisions about how many employees to hire, how much to charge for goods and services, and how to market merchandise to consumers in their target markets. As the US economy grows, consumers will be more likely to spend their income on your company's goods and services, so this is a great opportunity to attract new customers.

(Photo courtesy of freedigitalphotos.net)