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Recovery Signs Driving Optimism

Wednesday, January 5th, 2011

A stronger-than-expected U.S. manufacturing sector is largely responsible for an up-tick in underlying optimism about the U.S. economy heading into 2011 — all of which is good news for service and retail industries like the professional indoor tanning community.

The U.S. Commerce Department announced Tuesday that U.S. factory orders rose 0.7 percent in November 2010 — an increase that was not expected, but which was driven by factory orders for metals, electro1511optimismnics and appliances — most of which are consumer-related products.

In other words: the manufacturing sector anticipates consumers to buy more in 2011 and factories are getting busier.

“Busier factories mean more jobs, and more jobs mean a larger market for service-related businesses,” Smart Tan Vice President Joseph Levy said. “Factory orders have been on the rise for more than a year now. That’s as good an indication as any that employment will be headed in the right direction. Employment is generally a trailing indicator — in a recession jobs don’t come back until other things have turned around first.”

Taking advantage of a busier economy will be tanning businesses who have best positioned themselves for the future.

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