Good news week

If, like me, you’ve been a bit pessimistic about the prospects for economic recovery, then this week’s economic data must have convinced you that good times are not too far away.

This morning, those happy people down at the Reserve Bank have added to the festive mood by announcing that the RBA has lifted its forecast for GDP growth in 2009 to 0.5%, compared to its previous forecast of a 1% fall in GDP over this year.

Consider the other positive signs from this week:

• The ABS house price index jumped 4.2% for the June quarter.
• Retail sales, while falling 1% in June, remain positively buoyant given the economic backdrop.
• Unemployment was steady, despite every prediction otherwise.
• The RBA left interest rates on hold, specifically citing signs of recovery.
• SMEs reported rising confidence about profitably in 2009-10.
• The sharemarket has continued to rise slightly, after jumping almost 10% in July.
• Companies including Myer, David Jones and Retail Food Group, have all posted impressive profit results.

Yes, this downturn probably still has some way to run. Rising unemployment and falling business investment will keep the brakes on growth, but let’s face it – a growing economy is much better than one going backwards.

Given all this economic news, smart companies need to make sure they are actively preparing for recovery.

Yesterday’s terrific story by Leon Gettler outlined a number of things that companies should do to get their business in a position to take advantage of the recovery, including shoring up relationship with customers and suppliers, appointing specific executives to look at opportunities such as acquisitions and new sales campaigns, and re-energising any battle-weary employees.

Will your business hit the ground running when good times return?