/home/leansigm/public_html/components/com_easyblog/services Cautious consumers: the new reality
By Nitin Sinha on Tuesday, 26 May 2015
Category: Banking ,Financial Services and Insurance

Cautious consumers: the new reality

It was predicted that faster job creation and cheaper gasoline prices would drive the strongest growth rate in America but it is far from expectation. The reason is thought to be the start-and- stop spending by American households that represent almost 70% of the economic activity. It can be seen that there is a trend among the consumers not to spend freely. It is baffling as to why US consumers are being cautious. Interest rates are low; stock market is at an all-time high, home values are recovering, unemployment rate decreased to 5.4% yet things are not turning around. Savings rate went up to 5.7%. Though gasoline prices have fallen expenses on energy bills, food, housing, medical care, education has kept on rising. Wages though being adjusted for inflation cannot benefit the workers. Economists believe that US economy will turn around and the consumers will regain their confidence. Read more at:http://www.marketwatch.com/story/why-consumers-are-so-cautious-2015-05-19?page=1

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