These kinds of sales increases are important not only because they show that companies have enough financial confidence to make major purchases, but also because they represent a major increase in overall economic activity. The companies that produce this expensive equipment have new orders that can allow them to expand, or at least rehire workers laid off during the downturn. The purchasers have new revenue streams as more customers use their new equipment.

Where did the data on these increased purchases come from? From the companies likeliest to notice: specialty shipping firms. An MRI machine or a huge generator that maintains power flow to a server farm can’t just be loaded into a moving van – they must be carefully packed and transported by experts to avoid damage. The specialty shipping industry is showing a lot of confidence in large-scale industrial transportation in 2011 [source: PRWeb]. Other reports indicate 0.9 percent growth in the manufacturing of business equipment, computers and semiconductors [source: Chandra & Kowalski].

Housing Prices No Longer in Freefall

According to the Brookings Institution, in the third quarter of 2010, housing prices rose in 80 of the 100 largest metropolitan areas in the U.S., and rose 0.6 percent overall among those 100 cities. While the gain is small, it's significant because each of those 100 cities had experienced a decline in housing prices for the previous three quarters [source: Wial & Shearer].

Housing prices are an important indicator of economic recovery in general because, for most Americans, the majority of their wealth is tied to the value of their home. It may be an even more important as a sign of recovery right now because the Great Recession is so closely linked to a collapse in the housing market.

Advertising Sales Are Growing

A lot of our economy is tied to advertising. Look at magazines, television, professional sports, local newspapers, Internet sites and the like: We often take for granted that these things are primarily funded by advertising. In 2009, advertising spending in the U.S. fell 7 percent and grew just 1.5 percent in 2010. When advertising spending slows, it cripples a huge chunk of the economy.

The advertising industry is not expecting a miraculous turnaround, but analysts predict a 2.5 percent increase in U.S. advertising sales in 2011 – which is certainly an improvement – and 9 percent growth through 2013. While it’s not spectacular growth, it a whole lot better than a decline [source: McClellan].

Factory Production is Increasing

Manufacturing makes up roughly 13 percent of the U.S. economy. That's significant, but in some nations, manufacturing represents 20 percent or more of the total gross domestic product (GDP) [source: U.N.]. Gains and losses in manufacturing can often be felt more keenly than even these numbers would suggest, since a shuttered factory can cripple the economy of an entire city or region. Ask the citizens of Detroit.

With that in mind, news that the Ford Motor Company plans to increase factory production by 13 percent in response to a 27 percent increase in the number of individual buyers in January of 2011 is a very good sign for the economy [source: Krisher]. General Motors also reported record profits in 2010 as well [source: Bunkley].The big picture looks rosy as well: In mid-February, the Federal Reserve reported a 0.3 percent increase in U.S. manufacturing output.

From:

http://money.howstuffworks.com/10-signs-the-economy-is-improving.htm/

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