Post-recession consumer spending trends are finally shifting, reports Inc. magazine. It is important for business owners to understand the trends that are driving the consumer marketplace at a macro level, which ultimately affects 70% of the economic activity in the United States. To prepare your business for what's ahead, keep in mind the following four trends:
1. Increased Spending American consumers are finally adjusting their conservative recession spending mentality and beginning to pump money back into the economy. In addition to an improved housing market and increased corporate growth, consumers are finally loosening their wallets and beginning to feel more confident in with their purchases.
2. Better Access to Credit The credit crunch of several years ago is finally residing. Banks are more open to new borrowers, and borrower have become more responsive to lenders. In particular, small institutions such as credit unions or community banks have been wooing borrowers with competitive rates.
3. More Credit Cards Consumers are more willing to boost their debt, not only with loans, but with plastic. The 12% jump in the use of revolving credit is a hopeful sign for the economy that consumers are more confident in their income, home, and stock values.
4. Rise In Student Debt An increase in student loan borrowing has outpaced all other types of lending post-recession. Some economists argue that the the increased student debt-load will negatively impact the economy. Others say increased student debt is still a good investment in human capital that pays off in the future. Either way, it's smart to be aware of other financial burdens within the student age demographic that may be influence their spending decisions.
For more on consumer spending trends, check out the full article from Inc here.