The debate on Wall Street as well as Main Street is quite strong about whether the economy may be trying to form a bottom.  Recently some of the economic reports have begun to show a trend to results that are poor, but not as bad as they were expected to be. The April consumer confidence number was the highest of the year, and the Case Shiller Home Price Index even showed that the price decline in housing has slowed slightly. Other data, such as the jobless claims and the GDP number have yet to begin to show an upward bounce, but have begun to level off rather than continuing their quick pace of decline.

The signs are pointing to the fact that the consumer wants to think the economy is forming a bottom, and that the pace at which the economy is slowing down has definitely begun to moderate. It will take a whole lot more hard data to be able to get a solid look at exactly where the economy stands.

In the coming months there will be a huge emphasis on watching economic data, and you can bet that the stock market as well as common investors around the world will be tuned in. What numbers should be watched most closely? There will be a lot of scrutiny on the employment report, as well as weekly jobless claims. Also, retail sales will need to begin to perk up a little bit before we can really see that the consumer is beginning to feel more confident in actually putting their money to work. Reports that let us know about the current condition of the manufacturing sector will also be important to keep a close eye on. In general it will be key to hone in on the areas that have been hit the hardest and see if they are beginning to climb out of the deep recession.

The economy does seem to be showing a little bit of perk, but its far too early to call a bottom. Over time we will see whether this is a temporary blip or the start of something real.