Take Note

MORE SIGNS RECESSION IS OVER • New Home Construction Beats Expectations—The housing market in January rose 6.3 percent for new construction. Also posting strong gains were construction permits, an important forecast of the future economy. Besides boosting construction jobs and income, a secondary effect is new spending on appliances, furniture and other household items. • Home Sales Set Record—The U.S. Commerce Department reported sales for last year were 900,000 homes, well above 2000’s total of 877,000. Sales of existing homes in January 2002 set a record, posting an annual rate exceeding 6 million units. The previous record was a 5.49 million annual rate in August 2001. Also of note, prices for existing homes rose 6.2 percent. • Small-Business Hiring Spikes—Two-thirds of job seekers went to work at small businesses in the fourth quarter last year, compared with just 55 percent in the second quarter. This spike in small business hiring mirrors a pattern that occurred in 1991 as the country began pulling out of its last recession. Small businesses often are considered to be the bellwether of the economy because their size makes them more flexible during tough times and historically they have led the country out of recessions. • Businesses Begin Restocking—Small businesses are planning to build up inventory after almost a year of reducing. The National Federation of Independent Business says its January survey found that 21 percent of its small business members plan to add inventory shortly as compared to 10 percent planning to reduce. In December, only one percent said they planned to stock up. ‘SMART’ CARS JUST TWO YEARS AWAY Hope you’re ready for smart cars coming in the next two years. According to Kiplinger Letter, the new vehicles will add several safety and communications devices to warn drivers about mechanical failure or when tire pressure is low. Calls will be placed automatically from the car to emergency services and even to repair shops. Voice-controlled computers on board will access e-mail and the Web, and even navigational aids will respond to the driver’s voice commands.