Current Business Indicators

http://online.wsj.com/article/SB10001424052748704198004575310320477151144.html

Ford Chairman, Bill Ford Jr., speaking today as part of the WSJ Viewpoints Executive Breakfast series, indicated that his company expects increased profitability as auto sales return to normal levels. Obviously, his words carry weight because the company which bears his name turned around without government money. He's implying the return of a much larger market to the U.S. than many economists can see. "Normal" used to mean sales of 16 million units per year. Current projections are way below that at, roughly, 12 million units.

China has passed the U.S. market for volume of cars and light trucks sold. Ford also pointed out that he sees greater opportunity in the China markets versus India because of China's well-developed national infrastructure.

Part of Ford's massive turnaround was to sell Jaguar and Land Rover to the Tata Group in India. Ford could not make money with those brands as part of its Luxury Group. That deal looks like a "win/win" now because Tata has anounced this week brisk sales for both brands, especially in England.

Switching industries, another closely watched economic indicator is "business travel". The top airlines reported this week at an investor conference that business travel is back. Southwest Airlines expects to post increased revenue per seat mile of better than 20%. So, while business travel is nowhere near pre-recession levels, it has increased substantially lately. American Airlines reported an increase of about 17% over last year. The business traveler pays more because most of that volume is last minute - again a higher net per seat mile. The other airlines reported substantially the same thing.

So, while a smattering of news on autos and airlines "does not an economic comeback make", it is a smattering of good news. And, that beats bad news.