Improvements in the GDP for Q4 2009

This morning, a story in the Washington Post gave details about the nice surprise that was the U.S. economic performance in the fourth quarter: The economy grew, and at a rate better than expected. The Gross Domestic Product (a broad measure of economic performance) rose 5.7%, according to data released by the Commerce Department.

Of this number, analysts suggested that roughly 3.4% in growth came from companies that have dramatically slowed the pace at which they were cutting existing inventories. Companies that were investing in new software or equipment represented 0.8% of the number, and consumer spending contributed 1.4%.

Implications: It’s way too early to proclaim “the recession is over,” for reasons cited in another Washington Post story that explains why the economy is still fragile. Beyond what that “counter-point” story suggests… I’ll toss in the topics of employment and credit. Much of the GDP is driven by simple consumption, and nothing drives consumption (read: spending) like a consumer who feels good about their future prospects for a dependable paycheck. Jobs are a critical economic focus for 2010. Further, many consumers continue to make “reduction of debt” a key priority. That makes jobs even more critical, as people will spend on a paycheck-cycle basis, rather than spending on a whim, using plastic.

That doesn’t mean anyone should take a “wait and see” approach. It means that consumers will continue to be selective, deliberate, judicious; it remains critical to focus on your most ideal prospects, and super-serve the most important benefits and priorities with your marketing efforts. Concentrate on your most important customers, and be prepared to list the reasons (publicly) why you deserve to be at the top—or close to the top—of their consideration list.

I’m delighted at this morning’s news. You should be, too. But I’ll stay tuned to what is likely to be a story with at least a few more twists and turns.

Mike Anderson