The economy needs consumers to shop again because the Gross Domestic product report showed that there is a growth in the economy at 0.7% in the first quarter and the consumer spending was just at 0.3% annual rate. This is the slowest that it has been since 2009. This accounts for around 2/3 of the economy and ultimately has a huge impact on the Gross Domestic Report.
Relations to Marketing: There needs to be an understanding of what influences consumer behavior and why that consumer wishes to purchase something. Because of the increase in incomes, consumers will probably spend more. However, there is inflation that is rising and destroys the consumers gains which causes difficulty. Investors are advised to watch closely hoping that the second quarter is not low in consumer spending.
If consumer spending seems to be "tepid" then there is no way that there will be anymore investments on new equipment and expansion efforts and maybe raising salaries.
Link: https://www.wsj.com/articles/economy-needs-consumers-to-shop-again-1493395219
This is so true! Consumers are not shopping the way the used to in the pass. There has also been belief that since 2016 was an election year, people are not spending as much due to the "unknown future".
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