Filed under: Consumer experience, Economic data
American consumers, the pivotal factor in the consumer-dependent U.S. economy, may have modified their spending philosophy, The New York Times reported Tuesday.
Stung by the housing market correction, stagnant wage growth in certain job segments, above-average debt levels, and a slowing economy, Americans are saving more and using credit less — a shift that some analysts argue is a cultural inflection point of sorts, with huge implications for the economy.
Economist Steve Affinito told BloggingStocks Tuesday that while The Times‘ interpretative report did not “cite a large enough sample size to meet my fancy,” it nonetheless provided data points that support what macroeconomic indicators are saying about consumer choices.
“We know that the savings rate has increased in the last six months, and retail sales are sluggish, at best. Take these and combine them with much tighter credit terms for home equity loans and other credit and what you get is a pull back in purchases, particularly purchases on credit,” Affinito said.
Continue reading Are U.S. consumers moving away from buying on credit?
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