Critical Consumer Attitudes
It is well known that the attitudes held by consumers can impact the health of the economy. While consumer confidence is far from a major influence, it does play a role in how well many industries are doing at any given time. When attitudes suffer, consumers hold back; leading to a cycle of industry backlash.
Despite suffering through a recession and the wavering of many critical markets, new research shows that consumer confidence is on the rise. Retail and restaurant sales rose by 1.1% in September, a consistent trend so far this year. The homebuilder confidence index also rose, indicating that many Americans are beginning to show interest in mortgages and buying once again. Both of these factors are good news to economic analysts, who know that when attitudes are high, so are sales.
Increased sales means bigger profits for businesses who, in turn, reward consumers in the form of lower prices and help put back towards the economy in the form of more job positions. An improved outlook in the economy also brings better habits among consumers themselves, by way of motivating people to get out of debt, increase their savings and invest their money; all of which filter back into the economy in a positive way.