Durable Goods Purchases Increased by 2% in August
Published By : 30 Sep 2014 | Published By : QYRESEARCH
It is a good sign for the American economy as Americans are spending again. The consumer goods market has once again proposed new products to lure consumers for high purchases. After the financial crisis that took place in 2008, people had heavily cut down on their purchases, as most of them were finding jobs, including full-time jobs. Nevertheless, incomes have been soaring high every month this year.
Over the prior month, in August, purchases of durable goods increased by almost two percent in the furniture and cell phones sector. After meager gains of around 0.1 percent in the month of July, this increase is a healthy uptick for the consumer goods segment in America, reported the Bureau of Economic Analysis on Monday. It is a branch of the Commerce Department.
The August rush spending was however an intriguing aspect. It is rare for people to make large purchases such as automobiles unless they feel confident in personal finances and economy. However, the biggest factor that fuelled the growth in this market was the auto sales. Everything ranging from cars to parts accounted for half the gains in the consumer goods.
America’s economy is typically based on people spending on various services and consumer goods. Buyers are considered as key indicators contributing to the economy’s health and growth. They comprise the majority of the country’s gross domestic product, informed some economists.
Against this backdrop, the overall consumer spending increased 0.5 percent in August. After the flattened spending in July, by far, this increase is a positive sign and one of the strongest gains of 2014.
According to senior economist, Sal Guatieri at BMO Capital Markets in Toronto, sustaining strong economic growth without consumers’ intervention is difficult.