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Is the recession really losing steam?

The Conference Board last week reported that the recession is “losing steam.” Moreover, they project that a slow recovery should begin by the end of the year. The basis for the Conference Board’s optimism is that the index of leading economic indicators rose 1.2 percent in May, the second consecutive monthly increase. The Conference Board, a widely quoted private source of business intelligence, is a non-profit research organization providing information about management and the marketplace.

Another indicator we watch closely is the housing market. The re-stabilization of housing is viewed as an important precursor to increased boat sales. There is plenty of reason to believe that housing has reached the bottom and is positioning to begin recovery. For one thing, new home sales have been stronger than the consensus expected and this is consistent with the view that both new and existing home sales bottomed in the first quarter. That’s not to say its uniform, however. Some areas will linger way behind.
For example, further downward price pressure can be expected as builders reduce the inventory of new homes and as banks sell off foreclosed properties.  But, most of this downward price pressure will be primarily in five states:  California, Florida, Arizona, Nevada, and Michigan.  Other areas of the country are near or already at the bottom in prices. In fact, home prices reportedly rose in 16 of the 20 markets surveyed recently.

Notably, Texas is not among those five states. Perhaps that’s why the Marine Trade Association of Metropolitan Houston (MTAMH) just reported a very successful 22nd Annual Summer Boat Show. “Attendance was up 28 percent,” says Ken Lovell, MTAMH President. “Even better, we have reports from participating dealers that boat sales were strong and leads of qualified buyers were even stronger.”

And, speaking of Texas, I must call your attention to a superb example of how to utilize the materials available at www.growboating.org . Franklin Pillsbury, who manages the Dallas Boat Shows, has created an excellent website at www.discoverboatingtexas.com that uses many of the national “Discover Boating” campaign components to promote both Texas boating and the Dallas shows.

These outstanding materials are available FREE to every dealer. They are in the “Discover Boating Toolkit” which includes all sorts of high quality videos, online applications, industry information and much more. I can’t encourage you enough to check out what’s yours for the taking! If you want FREE professional materials to enhance your website, materials that you could never afford to produce on your own, click over to www.growboating.org and check out the “Discover Boating Toolkit” now.

Comments

2 comments on “Is the recession really losing steam?

  1. arch

    The recession has lost steam, but guess what, more coal is being thrown on the fire. Jobs report this week was weak, unemployment just went up AGAIN, Obama’s unemployment projections have been WAY off, and the FDIC is taken over more banks tomorrow than they have EVER in one day. As a matter of fact, the number of banks failing is growing, not slowing down. The stock market is projected to sell off over the next few months.
    THERE ARE MORE SHOES TO DROP BEFORE THIS IS ALL OVER.

    2010 is not going to be much different from 08/09.

  2. shine

    I agree, we may no longer be looking over the edge into depression, but recovery is not going to happen soon. Too much deleveraging to overcome. Not to mention more recovery road blocks being put up in Washington (cap/trade). Increasing taxes and making domestic industry less competitive will not help any recovery or create more jobs.

    Any business who’s customers require financing will continue to have hard times.

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