If the stock market is an indicator of how well the economy is doing (and I realise it is only ONE indicator), then the last quarter's FTSE 100 index resurgence tells us that the economy is doing very well. Quarter 3 2009 saw the FTSE 100 rise by 21 per cent - a record quarterly rise.
The previous best was in quarter 4 of 2009, when a 15 per cent rise was fuelled by the dotcom boom. This time round, the stocks that have fared the best have come from financial and mining stocks. (Finance stocks undoubtedly recovering from terrible previous falls.)
The single best performer, however, was British Airways, which rose by 77.8 per cent.
Does the rise signify a bull market? Or is it done for now?
Allan Collins, of brokers Redmayne Bentley, said: "A correction is overdue, but this market deson't look as if it wants to go down. Looking forward to next year, we're not going to be raging bull."
For my own businesses, a 21 per cent stock market rise has not meant a similar increase in revenue, profit or enquiries.
However, the stock market usually reacts ahead of business market changes. I would hope it translates into increased business henceforth.
And I can report that enquiries have been up this week!
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