8/5/2009

U.S. employers decreased payrolls by 371,000 in July, following a 463,000 drop in the prior month.  The slowdown in economic contraction provides positive signs for consumers; however, deepening unemployment may prolong the first quarter of growth further than experts projected.  Expect for distressed consumer spending to prevent positive GDP growth in the fourth quarter of 2009.

Security Services

In an effort to lower S,G, &A expenses, business are transitioning from professional security services to the electronic alternative.  The resulting decrease in revenue should lead to consolidation in the price competitive middle market.  M&A activity should increase at the upturn of the economy as strategic buyers acquire for geographic expansion.

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