Is the economy picking up?

Everyone is waiting for signs that the economy may be improving.  Jim McConoughey of the Heartland Partnership offers the following thoughts.  Let's hope that he is correct!

"We are starting to see signs of stabilization from the recession on many fronts.  The regional unemployment rates have remained fairly steady from August-December which indicates a recessionary stabilization rate.  Peoria MSA unemployment in December was 11.2% compared to 10.8% in November (.4% = approx 800 people).

Some companies are starting to hire employees again. Caterpillar has hired back 500 employees and other businesses in the region, like Peoria Charter Coach, are advertising job openings.  This news is a much needed boost to consumer confidence.

Retail sales forecasts are also positive for 2010.  After two years of declining sales, IHS Global Insight is forecasting that 2010 retail sales will hit $4.1 billion for the Peoria Metro.  This shows that people are expected to start spending again.

Another sign of stabilization in our economy is the movement of cargo.  Freight is starting to move again and this is an indication that our economy is strengthening.  According to Steve Jaeger, Director of  the Heart of Illinois Regional Port District (TransPORT), as the movement of cargo slowly recovers, the biggest problem for transportation providers is the depressed level of freight rates brought about by the recession.  “Trucking companies in the Midwest region, as well as the ocean carriers that bring in the imports, continue to struggle with revenue levels that fall short of covering operating costs.  Banks and other lenders to these firms are resisting calling in delinquent loans in hope that profitable operations are not far off.  The trucking companies with terminals in Central Illinois have idled much of their equipment during the downturn but are beginning to see demand pick up.”