Reports Show Greater Business, Consumer Confidence
Is the economic recovery beginning to take hold?
It sure felt like that today, thanks to several economic reports that show businesses and consumers feeling more confident. They're also spending more.
Retail sales improved for the fifth straight month in a row. The Commerce Department said sales inched up 0.8 percent from October to November.
Meanwhile, at department stores, spending jumped to the best level in two years. The better-than-expected results led many analysts to revise their forecasts for the holiday season upwards. The National Retail Federation now estimates spending from November to December will increase 3.3 percent compared to last year -- a full percentage point higher than the trade group’s original estimate.
As consumers feel more confident, companies do, too. A survey by the National Federation of Independent Business finds small businesses the most optimistic in three years. What's fueling that optimism? People spending more money.
Another report from the Business Roundtable says 45 percent of executives at the country’s biggest companies plan to hire within the next six months. That's the highest percent in eight years.
Markets
All told, the reports could signal that the economic recovery is beginning to pick up speed, at least for today. Wall Street liked the news. The Dow gained 48 points, closing at 11,477. The S&P 500 ended the day at 1,242, up by about one point, and the Nasdaq grew by three points, ending at 2,628.
Federal Reserve Holds Its Last Meeting of 2010
The Federal Reserve held its last meeting for 2010, and while the day’s economic news is positive, the nation’s central bank said the recovery is still not sufficient enough to bring down unemployment. So it's decided to continue with its plans to purchase $600 billion in Treasury bonds to further stimulate economic growth. The bank also left interest rates unchanged from zero to a quarter of a percent.
The Return of the Holiday Party
Holiday parties appear to be making a comeback, in a slightly different form. Instead of the big glitzy party, reminiscent of the boom years, a lot of companies are opting for smaller, more intimate gatherings at restaurants, and in some cases, at the boss's home. Lisa Fickenscher. a senior reporter at Crain's New York Business, talks more about what this year's office parties look like, and what they say about the economy.