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Consumer confidence has taken a hit in recent months because of stagnant wages and growing unemployment, two factors that have raised worries that consumers will cut back spending in the coming months.

Analysts also worry that consumers will grow reliant on government programs, holding onto their money when no such programs are available.

These figures have caused analysts to predict that consumers will spend less aggressively going into the holiday season, which may prove to be disastrous for retailers that rely on strong holiday sales to get through the rest of the year. However, inflation did not rise as much as expected, which is a relief to policymakers.

Post from: EveryJoe

Consumer Spending Fell in September

You’re not alone.

The latest Wells Fargo/Gallup Small Business index shows that half of 600 owners polled nationwide said they’ve postponed major purchases over the past three months.

In addition, just under half said they’re putting less into savings, while 31 percent have reduced their contributions to a retirement account, the survey found.

About a third said their personal finances were getting worse.

What about you?  Are you holding back from spending?

Post from: EveryJoe

Small business owners are postponing purchases

Hmmm… good question, Jen. One I hadn’t thought about.

So here goes it:

1) $100 – I’m gonna blow it. I want to spend impulsively on anything I want at the time. (I always do this when I get a surprise like this, as it makes me feel indulgent!)

2) $50 – on new domains for new ideas

3) $300 – on a new family gym membership

4) $150 – a small postcard marketing campaign

But what I really wish I could use the money for is to buy extra time.

How about you? How is your $600 rebate check going to be spent.

Post from: EveryJoe

I’ve been tagged: What I will do with my rebate check