The positive and the negative

According to Hanley Wood’s Key Indicator Alert from last week, the economy is still improving slightly. The stock market has been heading in the right direction; mortgage rates are declining; new and existing home sales are increasing. The main drags on the economy now are jobs and lending.

Employers are still shedding jobs but at a slower pace than previously. That makes sense as businesses are trying to maximize their smaller profits or, in some cases, minimize their losses.

Lending is still a big problem for our industry. Most homeowners don’t have the financial wherewithal to pay for large remodeling projects out of pocket. Therefore, larger projects are put on hold. There is still activity, however, at the maintenance level.

Oh, and a big plus was the surprisingly large increase in the August Consumer Sentiment. Are we ready to move forward? I’m thinking consumers are not happy with the prospect of another bleak holiday season.