US economy is finally back on the right track

The latest data from the United States shows that after multiple successive quarters of mediocre performance, the world’s largest economy is finally showing a sustained positive trend. During 2014, 3 million more Americans found work, with payrolls expanding by more than 252,000 in December alone — normally a low-growth month given year-end pressures and seasonal factors.

Companies are now sitting on large cash deposits and are finally feeling confident enough to invest those profits back into expansions — building more factories, installing new equipment, and hiring more workers to staff those facilities. And that is having a positive and immediate trickle-down effect on consumer confidence.

More workers have more cheques and are willing now to spend those dollars on consumer goods. With the falling price of oil, bigger vehicles are once more in demand — the US love affair is back on for large pickups and SUVs. In November alone — and Thanksgiving may in part be to blame for the positive sentiment — consumer spending increased by 0.6 per cent. And the most vehicles were sold in the US in 2014 for the first time since 2006.

The outlook for continued growth in 2015 looks equally positive. If there is a dark cloud on the horizon, that cloud could very well settle over Washington. There might be a temptation for Republicans to force a budgetary standoff with Democrats. Don’t be tempted. US voters have it good now — and they will punish anyone who interferes with the money in their wallets.