Paul Martin's Business Update - June 30th, 2014

We’ve reached the mid-point of 2014 which is an appropriate time to reflect on where the economy has been and where it’s likely to go for the remainder of the year.

One way to characterize the economic state of affairs after two quarters is settled.

We’ve seen key indicators such as housing starts and employment growth level out. New home construction has flattened as builders appear to have caught up to demand. The job numbers story is similar – new openings seems to be keeping pace with the arrival of additional workers.

That settling has prompted something of a swoon in attitudes, however. Small business owners in particular have begun to exhibit a lacklustre view of the future, probably because of those indicators. We’ve gone from a period of what felt like chronic shortages of things like housing and personnel to one where demand and supply are more in unison which creates the impression of a slowdown.

Yet, the numbers don’t support any notion of a decline – job numbers are up, so is consumer spending and the all-important investment figures are holding their own.