The NY based Conference Board's Employment Index showed a slight improvement for May. The Index increased to 89.9 from 89.7 in April for a 0.2% increase. This increase indicates that the pace of unemployment growth is slowing, but not reversing yet. Economists still predict that unemployment will increase above 10% either by year end 2009 or 2010.
Like many other indicators, this suggests that the economy is improving, but slowly. Companies must continue a constant eye on cost reduction and operating efficiencies. A 10% unemployment rate will continue to result in low consumer purchasing power, so revenues will continue to wane on average.
Tuesday, June 9, 2009
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