Economic Growth Resembles a Recovery, Not a Head Fake via GlobeSt.com

The improving economic and commercial real estate readings of the past few months continue to foster an encouraging outlook for 2012. Last month’s strong job performance put total private-sector employment growth for the past 12 months at just under 2.3 million. It seems companies are becoming more confident and cutting fewer workers as illustrated by the four-year low in first-time unemployment applications. Growing reliance on permanent full-time positions offers yet another data point that validates rising corporate confidence. For example, in 2010, temporary jobs accounted for one-third of net jobs created. That ratio fell to 9 percent in 2011, indicating the need for companies to commit to full-time, long-term workers thanks to improving corporate financial conditions. Another pivotal bright spot for the economy has been exports, which grew 5.1 percent over the past year and accounted for 13 percent of total economic output. Growth in trade continues to underlie somewhat of a manufacturing revival in the U.S., resulting in 235,000 additional manufacturing jobs in the past 12 months. As we anticipated last year amid the renewed concerns of a double-dip recession, the U.S. economy steadily shifted out of neutral and back into expansion mode. Leading indicators point to a continuation of this trend or better as 2012 unfolds.

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