By Steven Hansen Follow
The author is an international business and industrial consultant specializing in turning around troubled business units.
There are some signs the economy is improving – even Fed Chair Yellen says so.
Yet one can list sectors still declining which are as numerous as those advancing – others are simply flat.
There is reason to believe the USA is entering a new (and weak) business cycle.
Some economists believe there are positive signs coming from the new home construction sector. Residential construction is still decelerating but this week a significant jump in new home sales occurred.
Was this jump in sales a one-off occurrence caused by price cutting to unload inventory? Pundits claim it was the beginning of first time buyers jumping in. Time will tell. A resurgent building sector would be the foundation of a solid recovery.
My premise is that the USA is at the bottom of a business cycle. The data is being evaluated against very weak data for the previous year. At business cycle bottoms, some REAL TIME data improves, some flat-lines, and other data continues to decline. The last major business cycle bottom was in 2009.
To read the entire article go to http://seekingalpha.com/article/4002503-economy-entering-new-growth-cycle