Americans Take to Higher Savings and Restrained Spending
Published By : 03 Mar 2015 | Published By : QYRESEARCH
Several consumers in the U.S. have taken to a rather judicious consumption policy that involves minimal spending and saving more. This has come at a time when the world economy is facing falling crude prices of fuel. If this consumption trend carries on for a significantly long time, it will result in sustained economic progress over a long period of time. As per a latest industry report, the manufacturing sector showed a certain degree of expansion which took place in February at a sluggish pace.
Several segments that have benefitted from the falling oil prices are grocery markets, electronic merchants, movie theaters, and restaurants. They have benefitted because household finances have increased in terms of a smaller part of it being spent on fuel. Furthermore, the salary structures are also exhibiting improvements owing to better employment conditions. This has given several workers and the labor class the opportunities to save money for times when fuel prices become stable and they can undertake greater spending.
As per a group of senior economists, the scenario from the consumers’ perspective seems lucrative and quite stable. It is a very good development that greater spending and gains in terms of savings are taking place for short and long term benefit. Also, the current scenario is witnessing increasing stocks because of higher consumer purchases which happens to be by far the major factor driving the economy on a massive scale.
Many purchasing managers from food manufacturers to transportation equipment have stated that the coasts in the Western areas were getting affected because of rising costs and logistical issues and this also led to several stoppages in the regular course of work.