Economists, columnists and political pundits all agree that the nation is mired in a recession. New England in particular is on the bust end of a bom-bust cycle.

But Harvard Square businesses seem ignorant of be economic indicators. While bulldozer operators in other parts of the state are dozing off, construction goes on all around the Square.

Rental space is nabbed as soon as it becomes available, and precious little ever becomes available, Harvard Square businesses are doing well for recession times, and they are firmly entrenched in cubbyholes and mini-malls located on Brattle St., Mt. Auburn St., Church St., Massachusetts Ave., John F. Kennedy St., and all of the smaller side streets in between.

This year, three large retail outlet stores will enter the market-Tower Records on Mt. Auburn St., and HMV and The Express, a division of The Limited, at the newly-constructed One Brattle Square. And the Body Shop, an environmentally conscious beauty products store, joined the Square business community at the end of May.

While many local areas that have been expanding economically in recent years are now merely holding steady at best, the Square, while not exactly booming, is moving forward.

"We've been doing pretty well," says Edward P. Olson, manager of the Harvard Bookstore. "I certainly think people [in Harvard Square] are less affected than the general economy."

In fact, Olson says, his store is doing better this year than in recent years.

"I guess there's a certain quality of recession proof to people in the Square," Olson says.

Retailers and rental property managers around the Square agree that the area is somewhat insulated from national economic trends by the presence of universities like Harvard and MIT, which ensure that the Square is frequented by well-educated, well-employed consumers.

"It's a microeconomy," says Richard L. Friedman, managing general partner of the Charles Square complex, which includes the Charles Hotel.

Friedman, who has lived in Harvard Square all of his life, says that the evidence seems to support the perception that the place is "relatively recession-proof."

And while this year has been a "B" year for business at the hotel, Friedman says, it might have been much worse at a different location.

And the Square remains "One of the healtiest locations in the country," says Friedman, who is also involved in developing projects around the country.

The worst of the recession is behind Harvard Square businesses, Friedman says.

"Things are definitely picking up," says Friedman, "Bookings [at the Charles Hotel] are way ahead over last year at this time."