Rising U.S. Consumer Spending To Stabilize Shaky Global Markets
Fears over the global market and China’s slump derailing the U.S. economy may be overblown. ITR Economics, an economic research and consulting firm that offers economic information, insight, analysis and proactive strategies, forecasts a coming turnaround and says to trust in the power of the U.S. consumer.
In a blog post, ITR writes, “Put your money and your faith on the U.S. consumer. They are in great financial shape. Income is up, job growth is strong, and they are spending money. Unfortunately, from a perspective standpoint, the world is consumed with China’s economy at the moment. China will pull out of its current cyclical decline in time. It is not heading for Armageddon. In the meantime, keep in mind the following reality (using IMF and U.S. government data, both seasonally adjusted annualized rates): The U.S. is 59.6 percent larger than China’s economy.”
By spending money, the U.S. consumer drives the global economy higher, and U.S. consumer spending is rising, ITR reports. The US consumer runs the U.S. economy and reigns supreme over the world economy over the longer term. The housing industry looks strong through the latest data (November), and December automotive retail sales were robust at 9.0 percent higher than last December. Employment is rising at a healthy clip and disposable personal income is rising. ITR says, “We are not seeing any trends that will derail the U.S. economy powering the global economy into a better place as we go through 2016, particularly the second half of the year.”
ITR Economics has partnered with PPAI to produce data for the promotional products industry to help members improve their businesses. These include quarterly market outlook reports containing industry indicators, market analysis, advertising industry forecasts and a promotional products industry forecast. ITR Economics’ 2014 forecasts averaged 98 percent accuracy. Industry members can view recent reports at www.ppai.org/inside-ppai/research/industry-sales-information.
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