Are you a more confident consumer?

I am sure that you noticed a little extra in your pay cheque this month.  Well if you didn’t notice then that means you probably didn’t qualify for the much anticipated tax break.

All struggling workers appreciated the extra funds which some people started spending immediately while others put it aside for a rainy day.

Did the tax break really make consumers more confident in their spending?

According to a Gleaner article posted online on July 29, 2016 ‘Don Anderson, the head of the firm that conducts the surveys, said consumer confidence remains high due in part to election promises which are now beginning to materialise.’

Is this how you feel? What is consumer confidence anyway?

Consumer Confidence

Consumer confidence, measured by the Consumer Confidence Index (CCI), is defined as the degree of optimism on the state of the economy that consumers express through saving and spending.

This suggests that when consumers feel confident about the economy they spend more money, which in turn indicates a healthy economy. However, when consumers lose confidence they save more than they spend, which means the economy is in trouble.

The central idea is that the more confident people feel about the stability of their incomes, the more likely they are to make purchases.

The survey usually asks consumers to rate their current business conditions, employment conditions and family income. It seems as if the recently released results of the latest survey is in and it’s good news!

Saving vs Spending

You don’t have to go far to see that more people are spending as there is a constant rush on the more popular shopping malls.  There are always fairs at this time of the year and they too are being well attended. So it seems there must be some increased confidence.

I certainly like the fact that there is an extra jingle in my pocket but there is a lot to be said for saving as well.  After all there are so many uncertainties in life it’s a good idea to maintain a fund that will strictly be used for emergencies.

So are you more confident? Well just remember to put some aside before you go on the shopping spree!

See you at the mall!

What’s your take? Let me hear from you!

Teri Ann Renee Paisley

Gleaner online writer

Tags: consumer confidence