Consumers Starting To Spend Again

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We’ve talked in this space recently about indications that consumers might be getting tired of their frugal ways and could be itching to spend some of that money they’ve been saving. There are more indications in the news that could be happening.

First quarter profits for several retail companies— from Polaris Industries to Target and Royal Caribbean Cruises— have been encouraging.

Even though unemployment still nearly 10% nationally and the housing market is mixed, at best, consumers seem ready to spend on discretionary items.

“They’ve saved some money, they’ve paid down debt, and at a certain point you just get bored eating frozen pizza and watching cable TV on Saturday night,” Barry Ritholtz, head of the financial research firm FusionIQ told the Associated Press.

Consumer spending has increased for the last five months and retail sales have climbed for the last four months, according to AP research.

But don’t get me wrong. I don’t think we’re out of the woods yet, not by a wide margin. Dealers are still going to have to work hard to build traffic and they’re going to have to work even harder to convert that traffic into sales. But there does seem to be more reason for optimism today than there was six months ago. JD

Contact me with news tips and story ideas
at 952/893-6876 or joe@dealernews.com

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