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BIRTH RATES OFTEN fall during steep economic downturns, and in many nations the financial crisis of 2008 turned a modest baby boom into a bust.
The recession has been particularly discouraging for those in their child-bearing years who live in the hardest hit economies. In debt-ridden Greece, Portugal and Ireland, widespread joblessness and reduced social spending could lead to “protracted” declines in fertility, according to a study published last week by the Vienna Institute of Demography.
Wall Street loves babies, particularly since household formation and population growth propel economic activity. Investment experts track all manner of market signals, and when it comes to the outlook for baby-making, at least some keep an eye on pregnancy test kits.
So here’s a lovely economic indicator: Test-kit sales, which bottomed in the first quarter of 2010, are making a comeback. Using a nine-month lag in their models, analysts expect a significant increase in birth rates to kick in during the first quarter of 2012.
A baby-boom recovery, now that would be a little bundle of joy.