Consumers Remain Dubious Despite Claims From Executives That Things Are Looking Up
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by: Mallory Megan
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Word Count: 328
Date: Thu, 28 Jan 2010 Time: 12:51 PM
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According to the most current analysis by research agency TNS, consumers assessments and beliefs about the U.S. economy remain, for the most part, dubious. The research revealed that consumer's opinion about the economy hasn't changed at all since September.
64 percent of consumers that were surveyed currently hold a bleak outlook. Yet despite the fact that the consumers still have negative perceptions, business executives that pull between three million to two billion dollars have, as one might have guessed, a much rosier take on the situation.
Despite the fact that consumers felt slightly more positive about prospects for the economy in September, their beliefs shifted down to a more negative position in December. The study revealed that a large majority of consumers; sixty six percent, fervently believe that they will be reducing their personal spending over the next six months.
Although executives are more apt to say that the economy will improve in the next coming months, consumers remain dubious. The credit situation has almost everyone still in cost cutting mode. Furthermore, most companies are going to continue to assertively look for ways to cut costs in the next half year. Fifty two percent say that this includes labor costs.
And even though executives remain optimistic, they concede that the unemployment problem in the United States will only get worse before it gets better.
Last Sunday it was revealed that Walmart laid off 11,200 Sam's Clubs Employees, outsourcing the positions instead. And although recent studies have suggested that the jobless rate has gone down, there are pretty much no jobs that have been created.
Of course this news has ramifications on the debt collecting industry. In recent blogs, writers have slammed collections agencies; asserting that bill collectors should be the only ones flourishing in the economy. But when consumers don't have the money or the means to repay a debt, obvious pitfalls in the industry will occur.
About the Author
Mallory Megan works for a debt collection company. Also, shedoes pieces on consumer spending, business, finance, and debt collection.
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