A recent study conducted by the American Institute of CPA’s confirmed that US Buyers are changing their purchasing habits. Highlights of the survey include…
1 – 37% percent of adults have felt cautious while 36% felt uncertain about their financial situation in the past 12 months. As a result, 28% reported they’ve been charging less on their credit cards, and 27% said they’ve started saving or increased their savings rate.
2 – 27% said that they’ve delayed a major purchase like a car or home in the past 12 months, with 57% of those who delayed something saying that it was because of the cost of goods and services.
3 – Looking forward, respondents were divided on how the next 12 months would compare to the previous year. 37% believed that things would get better, another 37% expected no change, and 30% anticipated things to get worse.
The Harris Poll conducted this survey on behalf of the AICPA. Their results were based on a sample size of 2,000 adults.
Let me leave you with this…
It should be noted that these results run contrary to many of the latest economic indicators. Last week’s jobs report was very strong, even in the face of tariff turmoil.
So what should we believe? Are things great or not?
Many economists have described our economy as an 800 Pound Gorilla. Once it gets moving in one direction, it takes a lot of time and an enormous amount of force, for it to change directions.
This phenomenon has been proven time and time again. Once our economy is on a roll, many things have to go wrong for it to change directions, but something else is also true.
Consumer sentiment cannot be omitted from the equation, so please think about this in personal terms.
If you were worried about whether or not you’d have a job in the next twelve months, what would you do? Would you continue spending money like a sailor on leave or would you do exactly what the AICPA Survey said that consumers were doing?
Now multiply the survey results by 37% of all Americans with 27% putting off a major purchase, and what do you have? An 800 Pound Gorilla that changes course on goes a new heading.
I’m not writing this because I’m Chicken Little and believe that the sky is falling. But I am telling all of you to be cautious.
Changes in public attitudes about our economy have created bad economies with little else actually changing in the past. It doesn’t take much more than this.
Be cautious. Watch your numbers. Maintain your margins. We haven’t seen a major change in the overall numbers yet, but it’s much too soon to tell.
Big businesses never feel anything first. It’s always the entrepreneurs of smaller businesses that feel bad economies before anyone else.
Be careful and know that we’re all going to get through this.
Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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