The dog days of summer are here. The heat wave is finally setting in on the east coast, as we try to make the most of the last few weeks before school starts with quick family vacations, time off at the shore or other leisure activity. There is one thing however that is a little different this year - no, I am not talking about the unseasonably cool and wet summer.
In the midst of what is usually a quiet time for business, there are indications of increased activity. The DJIA has been on the uptick for the last six weeks (one can argue the given where it was in Feb '09, it had only one way to go) and the July unemployment report was encouraging, giving hope to businesses that the end may be in sight. One key metric, as one company executive put it to me is "the downturn has lasted so long that the quarterly results compared to the same quarter last year are starting to look better".
Does this mean that all the pent up demand for business services (and specifically IT services, which are usually the first to face the axe) will get companies to start investing again. Will we go from "maintainging lights-on" to "business transformational investments"? Is the anecdotal evidence of increased spending in financial services and insurance industry the beginning of a real recovery, or is it a red herring.
The coming weeks and months will tell. Meanwhile we are keeping our brains nimble, tools ready and fingers crossed.... all while trying to stay cool in the sweltering 101 degree heat.
Stay tuned....
Monday, August 10, 2009
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