Signs of a Recovering Economy

In order to determine where the economy is headed, you can bury yourself in economists’ models and spreadsheets, or you can just look at underwear sales. Sales of some products and services are indicative of a recovering economy, including the ten listed below:

1. Underwear. When it’s harder to find jobs, men wait longer to replace underwear. Underwear sales, which are usually very stable, dropped 2.5% in 2009, but are now starting to stabilize once again.
2. Desserts. Families who still dine out stick to main courses during hard times. The National Restaurant Association says that more people are splurging on desserts again.
3. Internet Searches. Fewer people are searching “unemployment benefits” and “social security” now than in July 2010.
4. Coffee. People have begun to splurge on expensive coffee again. Starbucks’ net revenues fell 6% in 2009 and increased 9.5% in 2010.
5. Cardboard Boxes. Everything is shipped in boxes, so the increase in demand for cardboard since 2008 means more people are ordering goods.
6. Less Walking. Car sales and cab businesses are on the rise.
7. Golf. The number of golf course visits stopped declining in 2010.
8. Surgery. The American Society of Plastic Surgeons says that the number of people undergoing elective cosmetic surgery increased last year by more than 13 million.
9. Gambling. Casino revenues dropped 10% in 2009, but have increased 3% this year.
10. Divorces. During hard times, it’s difficult for spouses to buy each other out of their home, so they stick it out. The American Academy of Matrimonial Lawyers now have more business than they can handle after a 37% drop in divorces in 2008 and a 57% drop in 2009.

See Neema Roshania and Jerry Idaszak, 10 Signs the Economy is on the Upswing, Yahoo! Finance, Feb. 18, 2011.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this to my attention.