Consumer Spending
In a recent CNNmoney article it was noted that consumer spending has increased over the past few months, starting with September. What does this really mean? Interest rates are going up, the housing boom has slowed, and people are still paying around two dollars for gasoline. Is this increase in spending only due to the upcoming holiday season, or is it a trend that will continue into the next year? The article also mentions that personal savings are still in the negative territory, what does this say about the increase in spending, and peoples attitudes toward the economy?
J. O'Dell
6 comments:
In the article it mentions that incomes have gone up, and generally when people have more money they spend more. I think the holiday season has also had an impact on the increase in consumer spending. The Christmas season always seems to make consumers want to splurge. People have a bad habit of not looking to the future, and do not save their money. They are making more money, so instead of putting that into savings they spend it and increase their cost of living.
being that it is the holiday season, it is only natural to assume that consumer spending has in fact gone up. Parents are going to do what ever they can so they can see the look on their kids faces on christman morning. Even if that means not saving for the nex two or three months. i think that after the new year hits we will start to see more saving.
Wal-Mart records nearly 60% of their sales in the months of November and December. Therefore, i don't think income increasing has much to do with increase in sales. People shop at places where they feel has the best and lowest prices. What better place to go than Wal-Mart. Wal-Mart, on Black Friday opened their doors at 5:00am. According to a friend of mine, Wal-Mart had a huge sale on laptops and sold out of them by 5:30.
I feel saving money is a very disciplined habit. Saving is one of those things where you either do it or you don't. The falling oil prices probably have people wanting to spend more. I suspect spending will decrease in january and oil prices will continue to rise. Is it a direct correlation of oil prices falling and the upcoming holiday season upon us. Saving more money on gas leads to more spending during Christmas.
I agree that during this time of year, money spending goes up. It is the holiday season and people want everything and now is the time to get it. I do think that in order to actually have an accurate view on spending habits, we should wait until after the holiday season.
I think that the economy is going to go downhill if prices keep rising and their pay stays the same. The people will become more poor as the years go on and will just be a huge mess in the long run.
I think people's attitudes toward the economy are not good. However, obviously peoples spending habits have not changed. This might have soomething to do with the holidays being around and people having to spend mor emoney to do what they feel they should and normally would. With that being said, I think that is the main point. People want to keep their lifestyles the same and don't want to accept that they may need to change to an extent. I think after people realize they don't have the amount of money they used to for certain things they will be forced to change their spending habits, and this will result in a decline in the economy.
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