— August 3, 2017
Predicting economic trends can help you to make smarter decisions about your business no matter what kind of business you are in. When consumer confidence falls and consumer spending goes with it, nonessential spending is typically the first thing to go. People stay in their houses longer, which affects Realtors, home builders, home improvement businesses and stores, and all related businesses. What’s more, tough economic times can lead to decreased spending in any nonessential service businesses – when people are losing their homes they are less likely to be looking for a new upscale restaurant for dinner.
One long overlooked predictor for these economic swings is the law index – how often people are hiring lawyers for things like bankruptcies and foreclosures can indicate where the economy may be headed. Paying attention to these indices can help you make better informed decisions about your business.
How Law Indices Can Bolster Existing Market Information
When there is a sudden spike in foreclosures during a period of economic growth, it may not be immediately apparent what is going on. But a look at legal intakes can help clarify the data – when more people have been severely delinquent but new delinquencies are going down, it may just be that mortgage holders are trying to clear out a backlog, leading to a spike in foreclosure proceedings. This can affect consumer spending in a wide variety of businesses.
Making Better Business Decisions Based On Economic Trends
If you own a home improvement based business and you notice an uptick in foreclosures, you may want to hold off on hiring additional personnel until you are sure you will need them in the long term. If you have any sort of nonessential service business, paying attention to economic trends can indicate when consumers may have more disposable income and you can adjust your business accordingly. Learn more about the importance of paying attention to economic indices from this infographic!
Infographic source: Legal Shield