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Three Pint Princess 2

What Will Convince Consumers To Spend Again.

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USA

http://www.bloomberg.com/apps/news?pid=206...id=aCl2uUrO23uc

Sept. 25 (Bloomberg) -- Demand for U.S. durable goods unexpectedly fell in August, signaling companies are planning to curb spending on concern gains in sales will not be sustained.

Orders for goods meant to least several years dropped 2.4 percent, the worst performance since January, the Commerce Department said today in Washington. Excluding transportation equipment, orders were little changed.

Restrained consumer spending and near-record excess capacity mean companies will probably not boost investment in new plants or equipment in coming months. The report caused Morgan Stanley in New York to cut its projection for third- quarter economic growth and indicates the jump in auto sales from the Obama administration’s $3 billion trade-in program may not give other industries a jolt.

“Firms are delaying spending where possible,†said David Semmens, an economist at Standard Chartered Bank in New York. “The U.S. has a disappointing recovery ahead. We are not going to see the kind of rebound we are used to.â€

UK

http://www.statistics.gov.uk/CCI/nugget.asp?ID=258

Business investment for the second quarter of 2009 is estimated to be 10.2 per cent lower than the previous quarter and 21.8 per cent lower than the same period last year.

Declines in business investment occurred in most industries, with the quarterly fall in business investment mainly due to reduced capital spending by industries classified as private sector manufacturing (down 15.4 per cent), private sector non-manufacturing (down 9.6 per cent) and public corporations non-manufacturing (down 7.7 per cent).

Factories have excess capacity, investment in business is dying, consumers are not buying their goods. The recovery must be here.

What will it take to convince people to spend future earnings on the high street.

I think we just had the first part of the depression, the return to normal consumer behaviour and now the real hard times are about to start.

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Increasing unemployment benefit................ :lol:

Yeah

Unfortunately spending isn't the problem now, it's what it's spent on. Chucking it all on imports just accelerates the collapse.

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I have to agree.

I have been saying the austerity of the 50s is coming back. I may be wrong, it could be the 40s.

A high street, next year:

article-1076389-02488AB4000004B0-651_468x374.jpg

The good news is that you can have plenty of Pinjar sage and onion stuffing with your eight ounces of carcase meat. Always a silver lining...

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Giving them more of their own hard-earned money to keep at the end of every month will probably get Consumers spending again...NOT cutting the VAT Rate by 2.5%, how will cutting the rate of something that gets taken off us if we spend actually give us more money in our pockets if we don't have that money to spend anyway?

mspL4

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What will it take to convince people to spend future earnings on the high street.

The human form of mad cow disease

When your job is at risk, your wages are deflating, tax is increasing and your house and pension are worth less it is logical to stop spending.

So the question is "what would cause the poplulation to behave illogically en mass"

The answer has to be some form of contagious brain disease or mass hypnosis.

Edited by dr ray

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I propose that the government impose fines on people who refuse to spend at least 120% of their monthly disposable income on 'stuff' they don't need.

Citizens, it is your duty to keep this economy going. Dissenters must be penalised.

Edited to change 40% to 120%. more debt required

Edited by Breck

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The human form of mad cow disease

When your job is at risk, your wages are deflating, tax is increasing and your house and pension are worth less it is logical to stop spending.

So the question is "what would cause the poplulation to behave illogically en mass"

The answer has to be some form of contagious brain disease or mass hypnosis.

Better get Derren Brown on the case then.

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The human form of mad cow disease

When your job is at risk, your wages are deflating, tax is increasing and your house and pension are worth less it is logical to stop spending.

So the question is "what would cause the poplulation to behave illogically en mass"

The answer has to be some form of contagious brain disease or mass hypnosis.

or say drug everyone so they go into a buying spree, say disguise it as, somthing like, em, a vaccine of some sort, oink oink

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The answer has to be some form of contagious brain disease or mass hypnosis.

Consumer Expectation could work, if we think inflation is going to rise apart from food/energy/clothing

people might purchase goods to avoid holding cash and cause inflation to rise outside imported food

energy, clothing etc into durable goods.

The bribes haven't spilled over, people buy a car and then carry on saving.

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That's what Bush said after 9/11- consumption redefined as patriotism :lol:

Not just Bush, that was the thrust of local US papers.

The economy was measured in retail sales. When 9/11 happened I read stories saying sales were down that day and the next and people needed to snap out of it and start buying again.

The US was a broken economy in 2001. As was the UK.

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We still have plenty of excess to use and recycle before it will be necessary to start spending again.....the only ones that will continue spending are the ones who have too much and don't know what to do with it.

When you don't have it you can't spend it.

When you don't have it why borrow it to spend it when you can save for it for less. ;)

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Im backing Britain...so im going out to buy a......well maybe a....or hang on, I could get a......think Ill stay home today.

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Restrained consumer spending and near-record excess capacity mean companies will probably not boost investment in new plants or equipment in coming months.

b0ll0x. Govt. spending will boost/encourage investments in new plants and equipment if they haven't happened already.

it's a myth that this recovereh is reliant on a return to consumer debt driven spending, or that we'll necessarily see that. IT just isn't, not when the govt. is able to spend.

also, what do you think is fuelling this consumer desire to save ? fiscal and monetary stimulus.

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b0ll0x. Govt. spending will boost/encourage investments in new plants and equipment if they haven't happened already.

it's a myth that this recovereh is reliant on a return to consumer debt driven spending, or that we'll necessarily see that. IT just isn't, not when the govt. is able to spend.

also, what do you think is fuelling this consumer desire to save ? fiscal and monetary stimulus.

new plants and equipment? where? who? dont they need customers?

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Guest P-Diddly
I have to agree.

I have been saying the austerity of the 50s is coming back. I may be wrong, it could be the 40s.

A high street, next year:

article-1076389-02488AB4000004B0-651_468x374.jpg

That photos wrong on so many levels.

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I haven't particularly benefitted from the super-cool-wacky-fun-times of the last decade so why should I worry about the depressing-sad-recession-times? Two years ago my income was 0.17 houses. Now it's 0.24 houses.

(Mind you, I spent 0.006 houses in Amsterdam last weekend :blink: ).

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