Good news: America's birthrate is rising again
2012's baby boomlet -- the first increase since 2007 -- has wide-ranging ramifications for future economic growth.
Data released by the U.S. Centers for Disease Control and Prevention show the country had 3.96 million births in 2012, an increase of less than 1% from the prior year, according to Bloomberg News. Still, that's the first growth since the depths of the recession in December 2007.
Economists have known for decades that people bring fewer children into the world when they're concerned about their economic future. Of course, the opposite is true, and plenty of evidence makes the case that times are getting better.
Friday's jobs report showed May unemployment is now 7.6%, up a tick from April's 7.5%, as more people are encouraged to seek work. The June 2012 rate was 8.2%.
Consumer confidence is also rising, reaching a six-year high in May. Auto sales are rising robustly, and both the residential and commercial real estate markets are booming. Home prices have surged in the 12 months through March by the most in seven years, according to Bloomberg News.
The ramifications of a rising birth rate may be felt for years in corporate America. Parents are going to need to clothe these children of the mini-boom, which is potentially good news for apparel companies and retailers such as Gap (GPS). Some may want to feed them organic food made by producers such as Hain Celestial (HAIN). They may want to entertain them with Apple (AAPL) iPads filled with content from Walt Disney (DIS) and other media companies.
New life is good news.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
I am sure all those uncaring and selfish procreators will love it, but thinking people do not! So, think and care about your thoughtful readers for once, and not always for the money you get from advertisers. Silly me, what was i thinking?
If the count includes all the illegals giving birth to automatic American citizens then yes the birth rate is going up along with the welfare and Medicaid rates.
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[BRIEFING.COM] The S&P 500 trades lower by 0.8% with one hour remaining in the first session of the week. This morning was very quiet on the economic front with participants receiving just one report-August Existing Home Sales. Tomorrow's session will be equally as quiet with economic data limited to the FHFA Housing Price Index for July.
The remainder of the week will feature August Durable Orders (Briefing.com consensus -16.3%) and the third revision of Q2 GDP with the latter set ... More
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