2010 will be the year of paying attention to inventories. This will be across the board of all sectors of the economy. Housing will be important but not in the forefront as it was in 09. Manufacturing is running very tight and holding inventories low. Housing is becoming more regional and following employment. Given that there is an eight month inventory of homes at this point in time the focus will become how much comes on board. Foreclosures will certainly keep pressures on inventory. Commercial Real Estate and the associated financing would be a big plus as this would create jobs rather than just creating temporary work.
The big surprise for me was that vacancy rates were up across the board. There seems to be little absorption from the downsizing.
All this adds up to a positive 2010 for the economy. All be it a conservative positive .
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