While Jobs Increase Consumer Spending Remains Low
March 12, 2012 By Law Office of Edwin M Walker III, P.A.
Consumer spending is a great initiator of the U.S. economy, pushing it forward or back depending on the trends of the time. It is so important that it accounts for around 70 percent of the activity of the economy. The job market has taken many hits recently. Economic hard times have forced many workers to seek unemployment compensation while they continue seeking jobs elsewhere.
Fortunately there have been recent advancements spurring on the job market and creating employment for those in need. With this increase in employment it might be expected that consumer spending would also raise comparatively, however, this has not been exactly the case. In January there was only a .2 percent rise in consumer spending as opposed to December in which there was no rise at all. Consumers are being faced with inflation such as the increasing gas prices. While many may be experiencing an income, they are still dealing with a number of factors decreasing the actual amount of money they have at the end of the day that could be used towards spending. Since consumer spending maker up such a large portion of economic activity, it is closely watched and analyzed by economists who determine what trends and factors influence it.
The weekly rate of application submitted for unemployment benefits has recently gone down to around 351,000 as well as the four-week average which went down to 354,00; the lowest they have both been over the past four years. Economists continue speculating on what the future of the job market will be. They estimate that about 200,000 net jobs were added by employers for the month of February. While the economy has been gaining some increases, the high inflation rates as well as taxes left many workers with a significantly lower income. In the month of January income went down, due in part to the payment of taxes. The months of December and January saw a good amount of job hires by employers who may have been looking to avoid pay raises.
Many areas of spending have either leveled off or gone down in their productivity such as commercial building projects which took a big hit. Many factories have seen a decrease in the amount of orders they are receiving, as stated by the Institute for Supply Management’s monthly index. The index had a fall recently after increasing during the past three months. While it dropped down to 52.4, it is still above the standard that demonstrates growth. This is not to say that all areas have only experienced a deficit when it comes to the spending from consumers.
The sale of automobiles continues to be on the rise, with this past month being no exception. The area of fuel efficient cars has seen an increase, with many consumers turning to products that are both better for the economy as well as needing less gas, a great consolation when considering the current prices of fuel. Many big name retailers also noted that the past month gained them favorable sales, including Gap Inc. who has been facing challenging times recently. Economists continue to assess where the future of the economy will be, believing that in this coming year it will rise to 2.5 percent. Determinations of where the economy will be in the future are in no way full proof. It is important for each individual to assess their financial standing and develop a strong financial plan for the future.
ABOUT THE AUTHOR: Law Office of Edwin M Walker III, P.A.
At the Law Office of Edwin M Walker III, P.A., located in West Palm Beach, Florida, they work with clients who are in financial need and may be considering bankruptcy. They are well qualified when it comes to bankruptcy law, and have a strong understanding of the various types of financial situations of those who are looking to file. A West Palm Beach bankruptcy attorney educates clients on the facts that they need to know and answers any questions they may have. Their firm also provides a free consultation to help determine which option best suits your financial needs. Their firm knows how important it is to have your finances in order and understands the harsh effects felt by those who are dealing with extensive bills and debt. They are members of the American Bar Association, Palm Beach County Bar Association and more. Let them help you to find your way out from underneath mortgages, loans and other expenses when you contact a West Palm Beach bankruptcy lawyer from their office.
Copyright Law Office of Edwin M Walker III, P.A.
More information about Law Office of Edwin M Walker III, P.A.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The weekly rate of application submitted for unemployment benefits has recently gone down to around 351,000 as well as the four-week average which went down to 354,00; the lowest they have both been over the past four years. Economists continue speculating on what the future of the job market will be. They estimate that about 200,000 net jobs were added by employers for the month of February. While the economy has been gaining some increases, the high inflation rates as well as taxes left many workers with a significantly lower income. In the month of January income went down, due in part to the payment of taxes. The months of December and January saw a good amount of job hires by employers who may have been looking to avoid pay raises.
Many areas of spending have either leveled off or gone down in their productivity such as commercial building projects which took a big hit. Many factories have seen a decrease in the amount of orders they are receiving, as stated by the Institute for Supply Management’s monthly index. The index had a fall recently after increasing during the past three months. While it dropped down to 52.4, it is still above the standard that demonstrates growth. This is not to say that all areas have only experienced a deficit when it comes to the spending from consumers.
The sale of automobiles continues to be on the rise, with this past month being no exception. The area of fuel efficient cars has seen an increase, with many consumers turning to products that are both better for the economy as well as needing less gas, a great consolation when considering the current prices of fuel. Many big name retailers also noted that the past month gained them favorable sales, including Gap Inc. who has been facing challenging times recently. Economists continue to assess where the future of the economy will be, believing that in this coming year it will rise to 2.5 percent. Determinations of where the economy will be in the future are in no way full proof. It is important for each individual to assess their financial standing and develop a strong financial plan for the future.
ABOUT THE AUTHOR: Law Office of Edwin M Walker III, P.A.
At the Law Office of Edwin M Walker III, P.A., located in West Palm Beach, Florida, they work with clients who are in financial need and may be considering bankruptcy. They are well qualified when it comes to bankruptcy law, and have a strong understanding of the various types of financial situations of those who are looking to file. A West Palm Beach bankruptcy attorney educates clients on the facts that they need to know and answers any questions they may have. Their firm also provides a free consultation to help determine which option best suits your financial needs. Their firm knows how important it is to have your finances in order and understands the harsh effects felt by those who are dealing with extensive bills and debt. They are members of the American Bar Association, Palm Beach County Bar Association and more. Let them help you to find your way out from underneath mortgages, loans and other expenses when you contact a West Palm Beach bankruptcy lawyer from their office.
Copyright Law Office of Edwin M Walker III, P.A.
More information about Law Office of Edwin M Walker III, P.A.
View all articles published by Law Office of Edwin M Walker III, P.A.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
