Tuesday, August 2, 2011

Economy: In Consumers We Trust I

These days the investors have to digest a row of negative news: Consumer spending fell in June, reported the media today. Yesterday we learned that manufacturing is slowing worldwide and that the U.S. debt compromise will enforce a severe slowdown of government expenditures. And the European debt problems are still lingering.

But anyway, the U.S. consumers don`t seem to be very scared. The National Restaurant Association reports (calculatedriskblog.com )that their Restaurant Index rose in June above 100, a sign that the U.S. restaurant industry is growing again. Restaurant operators reported stronger same-store sales results in June and restaurant operators also reported improving customer traffic levels, that means more customers.

Ok, the restaurant industry is just a small part of the U.S. economy. But rising spending for restaurants, economists call that discretionary spending, is a sign, that the consumers, at least a significant part of them, are still capable & willing to spend more money for things which aren´t necessary. The whole economy can´t be so bad as the current sentiment on stock markets claims.

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