What are the indicators of business growth? There are several, and one of the key ones is market confidence. Here are some of the Yair Hamami leadership factors that affect it:
- Future business conditions
Regarding consumer confidence, this tends to be within the 6-12 months. The outlook for the next half year or year can have an especially big effect on investments in particular. It’s one thing if the stock market shifts up or down in one day. However, it’s quite another thing if the country’s overall economy is expected to change significantly during the next 6-12 months.
These changes can have a major effect on consumer confidence and business growth. The reason is that they’re somewhat long-term effects on the state of the economy during the next year or so. If consumers are uncertain about how the economy’s outlook for the next year,
- Current employment/unemployment
Here’s another major factor that affects market confidence and business growth. They’re important figures because they indicate if more or fewer people are working now than during last month, quarter or year, for example.
These figures can be more complex than they might seem. For example, which sectors are adding or reducing jobs? Are the jobs for full-time, part-time, or temporary workers? Were there special situations that affected the change in employment or unemployment?
However, it should be noted that to the average observer changes in employment or unemployment is mostly an issue of perception. If there’s significant job growth, then it can encourage consumers to spend more or make investments. Unfortunately, it’s not always the best indicator to determine whether or not companies should spend more.
- Current economic/business conditions
These are some of the key factors that link consumer confidence to business growth. They can have a major effect on the growth of business. The reason is that the current economic status can affect how much faith consumers have in the economy. That can be on a local, regional, and national level.
Keep in mind this is about the general state of the economy. I slight drop in manufacturing or employment won’t necessarily have a major effect on market confidence. That’s because the changes are either minor or specific. On the other hand, if changes in the economy are affecting the entire country then this could have a big impact on consumer confidence and business growth.
- Family income for next 6-12 months
This is another key factor that can have a major effect on consumer confidence. If family incomes are projected to increase during the next year, for example, this will provide households with more money for discretionary spending, for example.
On the other hand, if households’ incomes are expected to drop during the next six months, it could affect how much faith consumers have in the economy. In fact, it could have such an impact that the household will delay buying a new car, dine out less, find ways to cut the monthly budget.
These are some of the key facts linked to market confidence as an indicator of business growth.