We Are Sunshine

Report finds ‘upbeat’ signs for economic recovery to begin this year.

Thursday, May 7th, 2009

U.S. consumer spending grew in the first quarter of 2009 — one of several economic signs that has the nation’s top forecaster cautiously optimistic that an economic recovery could take shape later this year.

2009-05-06-bright-signs-tanningnews-copy.jpgThe New York Times reported Tuesday that U.S. Federal Reserve Chairman Ben Bernanke feels the U.S. economy is “stabilizing on many fronts” and that there is cause for optimism even in the face of sizable job losses in the economy.

“Notwithstanding his caveats, the Fed chairman gave his most upbeat assessment since the United States fell into its most severe financial crisis since the Depression and its steepest recession since at least the early 1980s,” The New York Times reported Tuesday. “He noted that consumer spending, which sank sharply the second half of 2008, actually grew in the first quarter of this year. Sales of existing homes have been ‘fairly stable’ since late last year, in part because plunging home prices have made houses more affordable and interest rates on some fixed-rate mortgages have fallen below 5 percent.”

The North American tanning market has proven it is still recession-resistant — with Smart Tan surveys in the past year continuing to demonstrate that roughly a third of to one-half of the market is performing above expectation, while one-quarter to one-third is meeting expectations and one-quarter to one-third is below expectations.

More encouraging: an April poll showed that 74 percent of tanning businesses report an increase in client numbers so far in 2009 as compared to 2008.

“There is no doubt that the retail ownership in the tanning market today is better poised to be in the right position when the rest of the economy catches up,” Smart Tan Vice President Joseph Levy said. “That’s why Smart Tan continues to be optimistic about this season and is preparing to assist salons who are poised to grow heading into the coming year.”

To read the Times story click here.