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says Simson. "But we will not go back to the days when people plunked down their cards unthinkingly." HOUSING HEALTH Retail shopping patterns should be assisted by the continued improvement of the housing market. "Foreclosures are working their way through the process and fewer homes are entering foreclosure," says Koropeckyj. House price indexes are firming throughout the country. Indeed, they increased by 9.4% in 2013, up dramatically from the 2.8% increase of the previous year. That figure is expected to be 6.1% in 2014. The median home sales price increased to $198,000 in 2013, up sharply from the $176,000 figure of the year before. In 2014, that figure is expected to be $225,000. All these figures can only bode well for retailers as consumers have more money in their pockets to spend. "Looking forward, a major driver of faster growth will be improvement in the housing market," says Hoyt. "It seems clear that we have worked off the excess housing inventory that was put in place during the bubble. Demand for housing is now outpacing supply. In 2013 that demand manifested itself in rising prices. As we move forward, we expect continuing demand to lead to increased construction, and that can be a major source of jobs and income." Market observer Simson noticed a dramatic improvement in housing around the middle of 2013: "Especially in the Northeast, which seems to be cooking, there are good prices and houses do not stay on the market long. People recognize that low mortgage rates will not be here forever. They see a 4% deal and realize it is a once-in-a-lifetime opportunity. So they are saying, 'Let's do it now.' "Other parts of country are more mixed," adds Simson. "Much of the Midwest never had a housing boom so there are only pockets of overbuilding where condos are staying on the market longer. BONUS VALUE PACK FOR USE WITH Feather's Bonus Value Pack includes 30 Standard Replacement blades and a Blade Disposal Case to dispose your used blades. The blades fit all Feather Styling Razors. The stainless steel, platinum hardened blades give you the sharpest cut for an optimal haircutting experience! That will be cleaned up over the next year or so." CORPORATE UPTICK Shoppers and retailers alike are looking for relief from one major source: a rebound in hiring and investment by corporations. The good news here is that corporations are expected to rack up some robust sales in 2014, adding some much-needed heft to the economic environment. While corporate profits dipped to 3.4% in 2013—compared with 7% the previous year—the decline is expected to be temporary. "Corporate profits are down from 2012 due to weaker gains in manufacturing, financial services and mining," says Koropeckyj. However, as those factors are overcome corporate profits are expected to rebound to 7.3% in 2014. (To clarify, these corporate profit percentages are nominal, not percentage increases.) Robust sales and profits mean that corporations will continue their habit of bulking up their balance sheets with accumulated cash. That can only be good news when they finally decide to spend their money on expansion, equipment, and bigger labor pools. "An increase in business investment is one of the main drivers behind our forecast for a pickup in GDP growth in 2014," says Koropeckyj. "After expanding 2.8% in 2013, real fixed nonresidential investment is forecast to grow nearly twice as fast (4.8%) in 2014. The outlook reflects our view that stronger domestic demand and less uncertainty will encourage businesses to deploy the substantial financial reserves they have built over the past several years." Koropeckyj notes that recent federal surveys show businesses would like to pick up spending. "The average of the five surveys that ask this question about investment intentions six months hence has risen notably this year, more than doubling to a one and a half year high." A continuing low interest rate environment BLADE GLIDE The FINEST cutting/shaving lotion available. Blade Glide is an innovative silky smooth lotion that instantly helps the razor and shear blade glide smoothly through your hair and on the skin. It also acts as a light leave-in conditioner, detangles hair, equalizes hair porosity, moisturizes skin for smooth shaving and it will extend the life of your blades! www.JATAI.net Please contact your Jatai Rep for these current bi-monthly promotions 888.965.2824 *VU[HJ[V\Y4HU\MHJ[\YLY9LWYLZLU[H[P]Lₔ>LZ[=HU5LZ[*VSLTHU!ₔ.4 (ZZVJPH[LZ!ₔ:V\[O^LZ[*-5+VUVO\L! 5VY[OLHZ[*-5!ₔ4PK^LZ[=HU5LZ[*VSLTHU! ₔ:V\[OLHZ[:V\[OLHZ[9LW:LY]PJLZ! beautystorebusiness.com | January 2014 41