Spring fever could be the cure

In January the National Retail Federation released its 2010 economic forecast, which projected a 2.5 percent increase over 2009. Federation officials cited positive signs in economic indicators such as housing and employment as helping to bolster consumer confidence throughout the year. The projected increase would match the sales decline that occurred during 2009. Other positive economic contributions, according to the Federation, will come from strong trade exports, adjustments in the inventory cycle and federal government spending.
    
NRF chief economist Rosalind Wells said that even though consumers will continue to be frugal with their discretionary spending, retailers are expected to benefit from their efforts to better control product inventories and “pent up consumer demand”.
    
Even with NRF’s upbeat retail forecast, small-business owners are still struggling. The recession has taken a toll on these owners both physically and mentally. A survey of over 700 small-business owners by management consulting company George S. May International found that 52 percent of owners had experienced negative health effects from the recession. Released in February, the survey indicated 80 percent of respondents gave their business a nine-month lifespan if the economy did not improve.