There are not many of us who pay attention to the news on stock market reports which talk about consumer spending trends, when the report is made public. In fact it is just a compilation of statistics which did not have much meaning for an average consumer.

There are not many of us who pay attention to the news on stock market reports which talk about consumer spending trends, when the report is made public. In fact it is just a compilation of statistics which did not have much meaning for an average consumer. We just have to look at our personal household budget to know it out. It has become a very personal matter nowadays.

You may have seen the consumer advertisements on TV, where the pharmaceutical companies have become big advertisers, no doubt the target consumers is who has several health issues and the doctors who prescribe medicines. There are some more products for a usual consumer, like air freshener, fancy tooth brushes and tooth whiteners. Person shown in the advertisement typically resides in a lavish environment which most people today can’t afford. Now is it possible for them to even purchase the medicines, forget about the fancy, needless products? Here we can see the difference between real life and the world of TV.

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Grocery store is amongst the most displayed trends of consumer spending and most people are trying to save wherever they can. You may remember the time when you had to stand in the  checkout line for almost as long as you shopped and you would be standing behind people whose shopping carts will be full, with no place to add another item. Things have changed now and the time taken to checkout has become a little faster, and the carts generally half full with food.

Only a year ago the home electronics stores were the best centre for people wanting to buy gadgets.  A good example is the Circuit City, who has files for bankruptcy recently. Most people are managing with DVD players, cell phones and TV’s they already have. Priority today is to clear the bills and people want to hold on to the cash they have for any emergencies.

The consequences of the current consumer spending trends can be seen in the durable goods market.  We all are using the refrigerator, dryers, washer etc which we already have. When the times were better we would have changed these items before they were in such a shape. Nowadays user will wait till it is very essential to buy it.

For many retailers, the last holiday shopping season was gloomy failure and this also shows the other side of consumer spending trends. People are thinking very carefully before they buy anything be it clothes or furniture. In fact even discounts of about 75 % have failed to attract many people as people don’t want to part with their cash. Consequently, there are about three main department store chains who have filed for bankruptcies of Chapter 11. Most of us are aware of the auto industry; their consumer spending trends have become very weak.

Most people have changed their spending habits as described afore. It is vital for the government to take a bottom-up approach to be able to reverse such depressing consumer spending trends. People should be getting more of the stimulus checks. The proposal of not buying what you can’t afford will not stimulate the economy.

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