All these have good and positive effects. It is noticeable at the shops these, how people are thinning compared to last year. It is affecting the retailers and the economy but at the same time, it means people are saving or paying off debt - saving for the rainy days and maybe to spend on Blue Cross Blue Shield NC when it is the right time. I'm half-way in between...
NOBODY predicted the slowdown in consumer spending as Australia bounced back from the global financial crisis and no one has great confidence in forecasting how long it will endure.
The central view, reflected by our panel of economists, is that the savings rate will stabilise at just under 10 per cent (its current level).
This means spending is likely to start rising again, at least in line with income growth, The Australian reports.
The growth in average weekly earnings of about 4 per cent and of employment at, perhaps 2 per cent, should translate to acceptable growth in consumption in the region of 6 per cent.
Read more: http://www.news.com.au/money/wary-consumers-cut-back-on-debt-there-seems-to-be-a-change-in-attitude-to-household-spending/story-e6frfmci-1226027177918#ixzz1HmFEzkdR
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