The year 2014 opened with great optimism for the outlook of the economy and corporate growth. This article is designed to draw attention to events and situations that occurred during the first half; it is not intended to be comprehensive, just a brief overview. Following are the items to be discussed:
Section One: I will be sharing this optimism as expressed by technology sector CEO’s in the annual survey by Price Waterhouse Cooper.
Section Two: A short synopsis of the current state of the economy, touching on the Debt Service, GDP, Job Situation, Housing, Global Stability, and Inflation.
Section Three: List of major events that have happened in the sector within the first half of the year.
Section Four: Brief recommendation for the remainder of the year.
February, Price Waterhouse Cooper released the findings of its annual CEO survey entitled “Fit for the Future Capitalizing on Global Trends.”
Technology sector CEO’s were confident in an economic rebound but believed they would have some challenges as well. Their concerns included improving their ability to innovate, dealing with cyber threats, changes in R&D, but customer growth and retention as well as talent strategies remain top priorities.
Current Economic Status
U.S. Household debt service has been on the decline for the last three years. With less debt to pay off each month, people may have more money to spend, which could bode well for the economy. Franklin Templeton Investments 2020 Vision: Time to Take Stock
The Gross Domestic Product (GDP) in the United States contracted by a seasonally adjusted annual rate of 1% in the first quarter.
According to Reuters, employment of workers increased in the U.S. the fastest in the 1 quarter of 2014 over the previous two years, pointing to an economic rebound.
The April report of the Labor Department stated nonfarm payrolls surged 288,000, the largest gain since January 2012 and beat economists’ expectations for only a 210,000 rise.
The latest annual inflation rate for the United States is 2.0% through the 12 months ended April 2014, as published by the US government on May 15, 2014.
The housing market has made a comeback since mid-2012, home sales are currently up 33%, home prices by 23% and homeowners with negative equity fell from 25% to 13% as of April according to Case-Shiller Price Index.
The April 2014 Global Financial Stability Report (GFSR) found stability conditions is far from normal. For advanced and emerging market economies alike, a successful shift from liquidity-driven to growth-driven markets is essential.
Major Events in Technology Sector Thus Far
- AT&T buys DirecTV
- Eric Schmidt, Executive Chairman Google, went to Germany to invest in technology startups.
- Intel lost an appeal against European antitrust fine.
- Qualcomm develops chip to combine WIFI and LTE
- Evernote hit by denial-of-service attack
- Chinese army units linked to corporate cyber espionage
- Google passes Microsoft in browser war
- Top executives leave Twitter and Foursquare
- Level 3 accuses Comcast of harming broadband service
- Snowden accuses NSA of creating European bazaar to spy on EU citizens
Re-evaluate your short-term goals and plans, such as Production, HR, and Marketing to measure how you’re tracking for the year and adjust as needed.