In an ideal world, there would be no recessions. But unfortunately, they are a natural part of the business cycle. A recession is typically characterized by falling business activity and rising unemployment. However, after a recession ends, we enter into an Economic Recovery. This is the stage of the business cycle that is characterized by sustained improvement in business activity. Normally, during an economic recovery GDP grows, incomes rise and unemployment falls as the economy rebounds.There are several factors that contribute to a successful economic recovery: low interest rates, increased consumer spending and confidence, tax cuts and government spending increases (if done correctly). The Federal Reserve can also help spur on a healthy economic recovery by keeping interest rates low and making it easier for businesses to borrow money.So far this year we have seen some encouraging signs that point to a strengthening economy.For example: job growth has been steady; consumer confidence has improved; wages have started to grow moderately; housing prices have stabilized; stock markets are up significantly; and finally U6 unemployment (a broader measure of unemployment which includes people who are working part-time but would like full-time work) has declined from 17% in October 2016 to 8% in September 2018 . While there certainly remain some challenges ahead (e..g., high levels of debt), all indications point towards continued growth in the months and years ahead.
