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Consumer Spending Full Speed Ahead Manufactured Holiday Must Spend Spend Spend! Economic Collapse

September 19, 2011 By admin

There is no stopping the consumers today this day before the manufactured holiday of Valentines. The word on the street is Spend, Spend, Spend! Don’t want to make your loved one upset do you? No? then go shopping! But those flowers and chocolates. Spend Spend Spend!SUPPORT YOUR LOCAL RETAILER! When you support your local retailer, You are supporting your local economy. Before you decide to pump your money into corporate giants, Please consider that your local corner mom & pop stores are working hard to make ends meet. They are your neighbors and would like to feed their family as well.. So Instead of contributing to corporate executives Hawaiian Vacations, Shop at your local retail stores. support Your Neighborhood, Your Town and Your Economy. February 13, 2011 Buckeye, Arizona ©arizonapublic TWITTER: twitter.com

Filed Under: Consumer Economic News Tagged With: Ahead, collapse, consumer, Economic, Full, Holiday, Manufactured, must, Speed, spend, spending

Changing Consumer Spending Habits

September 8, 2011 By admin

by außerirdische sind gesund

Changing Consumer Spending Habits

Changing Consumer Spending Habits

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Home Page > Business > Sales > Changing Consumer Spending Habits

Changing Consumer Spending Habits

Posted: Oct 07, 2009 |Comments: 0
| Views: 283 |

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An economist once told me that the factual “story” behind any economic report or event is almost entirely based on sociology, the study of how human society actually operates and reacts to outside actions. It is certainly apparent that when the economy is either “booming” or “busting,” the spending habits of the global consumer normally change dramatically.

Those who watch our national economic situation know that our nation’s economic foundation is based on whether the American consumer is in a spending mood; two-thirds of our national economy is based on whether the public is willing to spend their hard-earned dollars at the nation’s retail centers, car dealerships, or within the service industry sector. But when things start to go bad, as they have over the past 18 months, spending habits can change drastically, damaging the economic infrastructure until consumer confidence finally starts to mend.

There are some economists and business leaders today who believe that the current global recession has not only forced consumers to prioritize their spending habits but it may have changed the consumer consciousness to the point that American businesses will have to determine whether or not they are dealing with a customer base with an entirely new spending attitude. Some business leaders believe that is the case.

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The CEO of the J.C. Penney Company recently gave an interview to voice his concerns about today’s shifting consumer behavior. Myron Ullman recently said that the U.S. consumer has a lot of anxiety and is very concerned about how upcoming changes in healthcare may affect their finances in the immediate future. He continued by saying that consumers are suddenly coming to the realization that “they may need to save more than they had originally planned. Their spending habits have changed to reflect this for the foreseeable future.”

He’s not alone; the corporate leadership of Best Buy, Drugstore.com as well as CEOs from the service industry (Hotels, Theme Parks, Restaurants, Rental Car Services) are all starting to realize that the U.S. consumer may never return to the spending habits of the past and that a change in their selling and advertising strategies might be necessary.

While people will continue to consume, they question now is what will they buy, when will they buy and where will they buy. Name brand products are taking a backseat to generic or store brand items. Malls are beginning to show signs of weakness – more and more stores are closing while consumers make their way to other, cheaper alternatives. Instead of going to one of the major mall’s “anchor stores,” they are now heading to places like Wal-Mart, Target or K-Mart to purchase the things their families “need” rather than the things their families “want.”

The economy is beginning to show signs of life for the first time in many months. Consumer spending was up in August by the most since 2001, indicating the biggest part of the economy is starting to rebound from its worst slump in almost 30 years. The 1.3 percent increase in purchases was larger than forecast and followed a 0.3 percent gain in the prior month that was bigger than previously estimated. By the way, incomes were also up at a 0.2% rate.

While all that may be true, the level of consumer confidence continues to be the key question. As I mentioned earlier, economics is all about sociology and until the American consumer starts to feel more positive about spending their money at the “corner store,” restarting the U.S. economy will just have to wait.

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www.whoisJamesDicks.com -For more than a decade, James Dicks has been one of the nation’s leading educators on the subject of Real Estate, Stocks, Options, the Foreign Exchange Market and empowering investors to handle their own investments.

James is living his dream by helping investors and businesses overcome the hurdles of reaching their financial goals. Millions of people have heard James’ message of diversification, money management and financial freedom and thousands have attended one of his many free workshops. Increasing investment knowledge is James’ goal and he strives to reach this goal by using a common sense approach that investors of all types can utilize on their road to financial freedom.

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Equity Update Video: 1Q earnings focus – industrial sector growth and consumer spending pick-up

September 6, 2011 By admin

Better than expected first quarter earnings for Siemens plus Mastercard and Visa point to industrial sector growth and consumer spending pick-up

The key issue is not whether the official recession is over, argues economics professor Steve Fazzari, but whether the economy can generate the growth necessary to put many of the unemployed back to work again. “In the deep downturns of the 1970’s and early 80’s, strong consumer spending growth led to strong recoveries. Unfortunately, I just don’t see it happening this time.” Fazzari’s research on the consumer spending binge that fueled economic growth for nearly two decades predicted the great risk for financial collapse that contributed to the Great Recession. The question now: What will drive the economic recovery this time?
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Filed Under: Consumer Economic News Tagged With: consumer, earnings, Equity, focus, Growth, Industrial, pickup, sector, spending, Update, Video

Consumer Spending ? Another Drag on the Economy! August 5, 2010

September 5, 2011 By admin

by DangerRanger

Consumer Spending ? Another Drag on the Economy! August 5, 2010

Consumer Spending – Another Drag on the Economy! August 5, 2010

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Home Page > Finance > Investing > Consumer Spending – Another Drag on the Economy! August 5, 2010

Consumer Spending – Another Drag on the Economy! August 5, 2010

Posted: Aug 05, 2010 |Comments: 0
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Being Street Smart

Sy Harding

Consumer Spending – Another Drag on the Economy! August 5, 2010.

Most of the time in American history it’s been a good thing that Americans love to spend, a good thing that consumer spending accounts for 70% of the U.S. economy.

Remember the recession of 2001? After the September 11 terrorist attacks drove consumers inside in fear, the consensus was that the recession could not help but worsen into the next Great Depression. But the Bush Administration issued emotional appeals for consumers not to huddle in fear but to come out and spend the economy out of recession – even if they had to borrow the money to spend, to “show the terrorists they cannot destroy the U.S. economy”.

It worked better than anyone could have expected. Households were provided with tax rebates and bonuses to spend. Interest rates were dropped and easy money loans were made available. Consumer spending not only pulled the economy out of recession but continued to do the heavy lifting, as businesses remained reluctant to spend until well into the recovery.

Unfortunately, the call for consumers to spend more, and the release from guilt provided by the suggestion that borrowing to spend was a good thing, unleashed reckless spending that not only salvaged the economy but eventually produced record credit-card debt, the housing bubble, refinancing of mortgages to take out equity for still more spending, and a euphoria about the good times that was the forerunner of the subsequent financial meltdown.

Currently it’s not such a good thing that consumer spending accounts for 70% of the economy. This time around fearful consumers are already head over heels in debt, wiser regarding the temporary illusion of good times financed by borrowing, and determined to pay down debt and save rather than spend.

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That is producing darker clouds over the already faltering economic recovery.

While reports that McDonalds or Starbucks are doing well lifts hopes, it’s the warnings and disappointments this week from the likes of Proctor & Gamble and Unilever, producers of consumer goods across a broad section of products that tell the real story.

It also showed up in the 2nd quarter earnings reports. While earnings mostly beat Wall Street’s estimates, much of the gains again came from lay-offs and other cost-cutting. There’s only so much cost-cutting that businesses can undertake.

Standard & Poor’s reports that while most S&P 500 companies beat earnings estimates, sales at one in five companies missed their revenue estimates. Bruce McCain, chief investment strategist at Key Private Bank says that consumers are spending 60% of what they normally spend during an economic recovery.

Also not good news for the U.S. economy, many of the companies reporting the biggest earnings gains generated most of those earnings overseas and from exports, not from sales in the U.S.

Against that backdrop, retail chains are reporting their same store sales for July today, and so far they are less than stellar, particularly considering the comparisons are to July of last year when chain store sales fell an average of 5%. So far, of 28 retailers tracked by Thomson Reuters17 reported lower than expected sales, while only nine beat the estimates.

Among the winners Costco Wholesale (COST) reported its July sales were up 6% over July of last year. Limited Brands (LTD) reported a big increase of 12%. Macy’s (M) beat estimates with a 7.3% increase.

But there are an unusual number of important disappointments. For instance, Aeropostale (ARO), a popular store with young people, reported its July sales were only up 1% over July of last year, missing estimates of a 7.1% increase. American Eagle (AEO) sales were flat. At the other end of the scale Dillard’s (DDS), the upscale retailer, saw its July sales decline 3%. JC Penney (JCP) reported July sales fell 0.6% missing forecasts of a 3.4% increase. Discounter Target (TGT) sales were up only 2%, missing estimates. BJ’s Wholesale (BJ) saw its sales rise 2.8%, missing estimates of a 4.5% increase.

The economy really needs consumers to spend, but consumer confidence was at its lowest level in nine months in July, and it looks like consumers are not only reluctant to buy homes and autos, but are now becoming reluctant to spend in the malls.

Sy Harding is editor of the Street Smart Report, and the free daily market blog, www.streetsmartpost.com.

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Sy Harding is CEO of Asset Management Research Corp., author of 1999’s Riding the Bear and 2007’s Beat the Market the Easy Way, editor of www.StreetSmartReport.com, and www.StreetSmartPost.com.

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Good day i am mary grace fajardo from philippines,i have a daughter whos father is an australian citizen who died last august 2010 who live trustfund for my daughter i dont know how to get it help me
Im a 56 yr. old man.Whats the odds of finding a good lady to show me the ropes there?I’m not looking for a prostitute.Thinking of spending 3 to 4 yrs. there

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Consumer Spending Flat in May, Personal Income Rises 0.3%

September 4, 2011 By admin

May consumer was flat in May, making it the weakest month since nearly a year ago, when consumer spending fell 0.1% in June 2010, the Department of Commerce reported today. Personal income went up 0.3% in the month, in-line with the consensus estimate. Wall street had expected a 0.1% increase in spending. The national savings rate edged up to 5.0% from 4.9% in April. Spending, after being adjusted for inflation, actually fell 0.1%, the second straight month in which that measure recorded a drop. The Personal Consumption Index rose 0.2% in the month, and is up 2.5% over the past twelve months. The core PCE price rose 0.3% in May, above the estimate for a 0.2% rise and the largest increase since October 2009. Over the past year, core inflation has increased 1.2%, which is below the Federal Reserve’s implicit target of about 2%.

Filed Under: Consumer Economic News Tagged With: 0.3%, consumer, Flat, income, personal, rises, spending

Consumer Spending Extravaganza Friday Night Update – No Economic Collapse Here!

September 2, 2011 By admin

The public is out in full force this Friday night as the economic crisis continues. Tonight I took a drive around town locally looking for any signs of the economic collapse and I am happy to report that I found not even so much of a hint of a economic crisis at all. Have the consumers had enough negative news? March 25, 2011 Filmed during the hours of 7:00PM – 7:30PM Phoenix, Arizona’s West Valley SUPPORT YOUR LOCAL RETAILER! When you support your local retailer, You are supporting your local economy. Before you decide to pump your money into corporate giants, Please consider that your local corner mom & pop stores are working hard to make ends meet. They are your neighbors and would like to feed their family as well.. So Instead of contributing to corporate executives Hawaiian Vacations, Shop at your local retail stores. support Your Neighborhood, Your Town and Your Economy. ©arizonapublic TWITTER: twitter.com
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Filed Under: Consumer Economic News Tagged With: collapse, consumer, Economic, Extravaganza, Friday, Here, night, spending, Update

Consumers gloomy but their spending says otherwise – The Associated Press

August 31, 2011 By admin

Telegraph.co.uk

Consumers gloomy but their spending says otherwise
The Associated Press
WASHINGTON (AP) — Economists have advice for anyone worried that consumers are too fearful to keep spending: Look at what they're doing, not what they're saying. A survey of consumer confidence shows that Americans were spooked early this month by the …
Consumer confidence plunges, but Americans might still spendMiamiHerald.com
Consumer confidence plummets. Should you worry?Christian Science Monitor
US consumer confidence crumbles to 2-year lowReuters
Wall Street Journal -Sacramento Bee
all 1,092 news articles »

consumers – Google News

Filed Under: Consumer Economic News Tagged With: 'Gloomy', Associated, Consumers, otherwise, press, Says, spending, their

Changes In the US Economy: Savings Overtake Consumer Spending

August 29, 2011 By admin

by Leader Nancy Pelosi

Changes In the US Economy: Savings Overtake Consumer Spending

Changes In the US Economy: Savings Overtake Consumer Spending

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Home Page > Finance > Changes In the US Economy: Savings Overtake Consumer Spending

Changes In the US Economy: Savings Overtake Consumer Spending

Posted: Aug 09, 2010 |Comments: 0
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Is this the new mantra that is eventually going to change the US economy structurally? Latest data suggests that savings rate for Uncle Sam’s America grew faster than consumption expenditure. While consumption expenditure grew 1.6% in the second quarter, savings rate shot up to 6.4%. The US economy thrives on consumption expenditure, which accounts for over 70% of the GDP. A high savings rate implies that consumption expenditure will remain subdued and economic growth will suffer.

While a healthy savings rate is usually considered good for an economy as it provides capital for investment, the US economy has structurally modified itself to a certain extent such that it can attract capital from overseas very easily and it is more dependent on imports for its goods than producing them at home. With this structural model, the more the American consumer spends and the less he saves, the GDP grows. But, is this model sustainable? Well as long as the rest of the world is willing to lend to the US to fund its consumption expenditure, it is a feasible proposition.

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Unfortunately, this is where the problem lies. The rest of the world would be willing to invest in US paper as long as the dollar is stable and the investments fetch returns. Stability of the dollar hedges currency risk and the possibility of erosion of long term value of the investment. The stability and the value of the dollar are linked to the health of the US economy, which include GDP growth, interest rate, inflation, fiscal deficit, current account deficit and other such parameters.

US GDP growth decelerated to 2.4% in the second quarter of this year from 3.7% in the first quarter, clearly indicating that the US is not yet on a sustainable growth path and, as the impact of the stimulus wears off, the US economy is beginning to slack. Interest rates, the monetary lever for stimulating economic growth are close to zero. Trillions have already been spent as fiscal stimulus, which add to the fiscal deficit. The state of economic recovery suggests that there is need for further fiscal stimulus as the monetary lever cannot help any further. This is going to impact the fiscal deficit and the fiscal reputation of the US. Such eventualities can cause an erosion of faith in the US dollar and slacken the world’s keenness to lend to the US economy.

The tax cuts implemented by the Bush administration as a part of the fiscal stimulus are set to expire in by the end of this year and a debate is ensuing on what should be done next. U.S. Treasury Secretary Timothy Geithner is of the view that tax cuts cannot pay for themselves via stimulation of economic growth. The US government reportedly wants to lapse tax cuts for households earning more than 0,000 a year, while continuing tax breaks for households earning less than 0,000 per year.

The fine balancing act that the government does at this point to lubricate the economy on the one hand and to keep the fiscal health of the US on the other hand are key to determine the strength of the US dollar going ahead.

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Why do Barry and friends think that debt financed consumer spending creates sustainable growth?

August 17, 2011 By admin

Question by Great Success: Why do Barry and friends think that debt financed consumer spending creates sustainable growth?

What happens when people decide to start repaying the debt again?

Best answer:

Answer by Gorilla Cookie
Because they all grew up in the hood living off of payday loans.

Know better? Leave your own answer in the comments!

Filed Under: Consumer Economic News Tagged With: Barry, consumer, creates, Debt, financed, friends, Growth, spending, sustainable, think

Do some types of consumer spending create more economic growth than others?

August 9, 2011 By admin

by David Berkowitz

Question by eeeeeeeli: Do some types of consumer spending create more economic growth than others?
How is wealth ultimately created? Would it matter whether one spent a dollar on bus fare, or a luxury watch? Or is the answer simply dependent upon which contributes more to overall investment in new technologies, efficiency, etc. (whatever drives wealth creation) – and this could be consumer spending or business resources.

Best answer:

Answer by simplicitus
Yes it matters, but not as much as spending vs. not spending, especially as you are referring to consumer spending.

For example, government spending on military hardware creates much less economic growth, both in the short term and the long term, than money spent on schools and education.

All other things being equal, money spent on services and on labor intensive goods has a higher multiplier effect than money spent on capital intensive goods such as cars and electronics. It is also the case that goods with higher local content have a higher multiplier effect than goods with lower local content.

Thus, for a government wanting to stimulate the economy, it matters how it does so. Simple tax cuts for the rich (1.03) and payroll tax cuts for corporations have less stimulus value (1.29) than increasing foodstamps (1.73) and extending unemployment benefits (1.64).

http://www.economy.com/mark-zandi/documents/assissing-the-impact-of-the-fiscal-stimulus.pdf

http://www.cbsnews.com/stories/2009/07/26/eveningnews/main5189631.shtml

http://www.northbynorthwestern.com/2009/02/20237/why-you-should-care-about-the-stimulus-plan/

Add your own answer in the comments!

Filed Under: Consumer Economic News Tagged With: consumer, create, Economic, Growth, more, others, some, spending, Than, types

Consumer Spending Full Speed Ahead Manufactured Holiday Must Spend Spend Spend! Economic Collapse

Changing Consumer Spending Habits

Equity Update Video: 1Q earnings focus – industrial sector growth and consumer spending pick-up

Consumer Spending ? Another Drag on the Economy! August 5, 2010

Consumer Spending Flat in May, Personal Income Rises 0.3%

Consumer Spending Extravaganza Friday Night Update – No Economic Collapse Here!

Consumers gloomy but their spending says otherwise – The Associated Press

Changes In the US Economy: Savings Overtake Consumer Spending

Why do Barry and friends think that debt financed consumer spending creates sustainable growth?

Do some types of consumer spending create more economic growth than others?

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