Sunday, October 16, 2011
Retail Sales Better in September
This article shows promise in our economy. The fact that sales are above projected means people are more willing to spend. This is showing that there is faith in our economy. If more money starts to flow from consumers this is a step in the right direction. It might even start a spark for our economy. However, I wonder if these higher numbers are due to the approaching holidays. People could be trying to spread out their spending instead of just spending massive amounts at once closer to the holidays. Whatever the case it is still a glimmer of hope for a faster recovery.
Subscribe to:
Post Comments (Atom)
I read an article a couple days ago saying that the banks are more willing to issue all kinds of loans including mortgage, car loans and credit cards. That might be one of the reasons why sales become better.
ReplyDeleteI think there is another reason concerning September. The coming-back-to-campus shopping should have a big influence on the total retail sale amount. Parents buy all kinds of staff for their child, from new bed sheets to laptop even cars.
ReplyDeleteAlso, it is said that during depression, people tend to buy more less-expensive stuff to fullfil their shopping derise, since they cannot afford the fancy things.
This comment has been removed by the author.
ReplyDeleteInteresting article. I feel that the sudden increase in spending by consumers is merely due to the festive season and the "coming-back-to-campus" shopping. This I feel is only for the optimists. As the festive season draws closer, I feel spending will only be on the rise. It would be interesting to see what the GDP growth rate would be like in the next quarter. If it does show a significant rise due to consumer spending, it would be only time to wait a little longer for the economy to come back to normal. We will simply have to wait a little longer before drawing concrete conclusions.
ReplyDeleteWhile I agree that some of the increase in consumer spending may be due to an increase in back to school shopping (as mentioned in the above comments), I don't believe that would have accounted for most of the increase. Back to school shopping usually takes place almost completely in August (before everyone goes back to school). If it was merely due to back to school shopping, August would have had a larger increase in consumer spending as well, seeing as that is when most people do back to school shopping.
ReplyDeleteEducation makes is relatively largeof the pie chart of an Economy. Cyclical sales are indeed to affect the economy as a whole, but there are much bigger factors that go into an economy. I agree with the person above that if it was just school shopping, consumer spending would have been more in August, therefore suggesting that it is something else.
ReplyDeleteThis article tells us that we may be slowly coming out of our recession. It is good to know that people arte willing to spend money still and as we know more spending can contribute to a stronger economy.
ReplyDelete