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Consumer Spending

Business Consumer protectionConsumption expenditures

Consumer Spending
Purchase of goods and services by U.S. individuals, accounting for about 2/3 of the GDP.

 


Consumer spending can damage the economy. If it drops off, economic growth will slow. Prices will drop, which creates deflation. If slow consumer spending continues, the economy can go into a recession.

consumer spending
Marketing
total amount of household and personal expenditure the total value of household and personal expenditure measured at macro and micro levels.

Using Consumer Spending As A Market Indicator
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Cashcard Retail Index - Australia Gauges Australian consumer spending. The Cashcard Retail Index tracks cash,... cashier's check A check which cannot bounce because its face amount is paid to the bank when...

Consumer spending accounts for about two thirds of the U.S. gross domestic product (GDP).

The furniture and electrical goods retailer, JD Group, recorded a sound set of results for the year ended August 2010 with total revenue improving marginally by 2% despite a 6% decrease in financial services revenue, as consumer spending ...

A government report which measures consumer spending on long-term purchases, products that are expected to last more than three years. It is intended to offer a gauge of the future of the manufacturing industry.

The Consumer Confidence Index has historically been used as an indicator of future consumer spending. Thus the Consumer Confidence Index points to the overall strength of the economy and, in turn, the inflation outlook.

Consumer spending, housing starts, and interest rates are barometers used in economic forecasting. The Dow Jones Industrial Average and the Standard & Poor's 500 Stock Index are prominent stock market barometers.

To cut consumer spending sales tax (in the UK VAT, in Canada GST) can be increased.

On the other hand, non Cyclical stocks are also known as Defensive stocks because they do NOT rely on consumer spending.

This is based on Dent's finding that a human's consumer spending habits peak by age 50; therefore, as the baby boomer generation reaches this age, the economy may be approaching a peak in consumer spending and in the markets.

is related to a firm's financial performance in terms of return on investment (ROI), sales, long-term firm value (Tobin's q), cash flow, cash flow volatility, human capital performance, portfolio returns, debt financing, risk, and consumer spending.

A general price decline during which consumer spending is substantially curtailed, bank loans contract and the amount of money in circulation is reduced. It is the opposite of inflation and generally applies to more than just a temporary decline.

Cutting interest rates should increase consumer spending and investment.
Lower interest rates:
Reduce cost of borrowing
reduce mortgage interest payments increasing disposable income
Reduce incentive to save ...

7- CNN Effect
In the wake of widespread news stories, consumer spending shifts irrationally. However, that short-term shift often corrects itself rather quickly as people forget about the story and go back to behaving as they did before.

prediction of the future sales of a particular product over a specific period of time based on past performance of the product, inflation rates, unemployment, consumer spending patterns, market trends, and interest rates.

A phase of the business cycle during which consumer spending is seriously curtailed, bank loans shrink, and the amount of money in circulation is reduced. It is the opposite of inflation.

Fuel prices push up US consumer spending
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It consists of four elements, consumer spending (C), investment (I), government spending (G) and the expenditure on exports (X), less any expenditure on imports of goods and services (M): AD = C + I+ G + (X -M).

"When other salaries are adjusted upward to compensate, the result is often a stronger economy with higher consumer spending."
This is only true if the prices of things aren't rising as well.

Some believe that inheritance taxes do not have any harmful effect on the economy and may even be beneficial as they encourage consumer spending by the elderly.

This makes it highly cyclical as spending on advertising is easy to cut when savings need to be made, and returns on the same level of advertising are likely to be lower when consumer spending is lower.

conditions such as employment rates, interest rates, and government policies. It is then used to conduct analyses on various economic situations. An econometric model, for example, might be used to show the relationship between consumer spending and ...

such as business machinery and major household appliances Retail sales of durable goods to consumers are another leading indicator. Because such purchases can be put off during bad times, any increase reflects a changing trend in consumer spending.

Consumer spending - The purchase of consumer goods and services.
Corporation - A legal entity owned by stockholders whose liability is limited to the value of their stock.
Costs - See Opportunity Cost ...

See also: Mergers, Acquisitions, Smith, Risk management, Forecasting