Consumers are changing how they spend their money as a result of coming out of the pandemic, inflation, and their overall worries in the economy. Wages have continued to grow, and consumer spending increased 1.1% in March, but it looks like many shifts are beginning.
1 – The largest consumer spending increases happened when the three stimulus checks went out during the pandemic. Since no more are scheduled, these numbers are evening out.
2 – In the past twelve months, Americans have reduced the amounts they spend on cars, furniture, appliances, and other durables.
3 – Non-Durables spending increased 2.5% in March due primarily to an increase in gasoline prices, while durables decreased 1% in the same period.
4 – Americans are again spending money on dining and other leisure activities although these numbers haven’t again returned to pre-pandemic levels in most major markets.
5 – Americans are no longer saving money as they did during the pandemic.
6 – Inflation has outpaced wage growth as Americans are dipping into their savings to pay bills.
What does all of this mean? That depends on what business you’re in.
Many businesses do better in recessionary periods, while most don’t do as well, but one thing is certain. The economy has all of the warning signs for difficult times ahead. Make your plans today.
Let me leave you with this.
We celebrated Mother’s Day yesterday. Given the fact that I lost my mother a few months ago, yesterday wasn’t an easy day for me.
My favorite story about this holiday happened about thirty-five years ago. Mama had begun a new tradition of taking my grandmother to Vegas for Mother’s Day every year while I was away at college and couldn’t get home to see them.
They would stay at the Vegas Hilton, which was where Liberace had his show. Granny was a big fan.
They booked tickets to his later show on Mother’s Day, and went backstage to see him after. Depending on the seats that you bought, this was an option.
So Mama wheeled Granny backstage to meet Liberace on Mother’s Day, and what did he do? He serenaded my Mother and Grandmother with the song, “Mama.”
Just imagine this picture. My almost full-blooded American Indian Mother and Grandmother sitting backstage at the Liberace show being serenaded by the man himself. The tears didn’t stop for a while.
Granny talked about that day until the day she died. I wish I could have been there.
Being a parent isn’t an easy job. None of us begin to appreciate it until we have children of our own.
If the death of my mother taught me anything, it’s that we should appreciate our loved ones while they’re still with us. My Mother went to the Father like the hero she was, knowing how much I loved her, respected her, and appreciated what she had done for me.
Make sure you do the same while you still can.
Our Employee Retention Credit Seminar is restricted to the first 100 guests and is filling up fast. If you or any of your friends have not yet claimed the credit, don’t be left out. Please register today.
When: May 18, 2022 02:00 PM Central Time (US and Canada)
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