Monday, March 30, 2009
Two Forces at Work Against Disposable Income
The economic impact of increased US savings. US consumers are spending less and saving more. The economic impact of that combination will depend upon how fast incomes grow.
Two forces that until recently turbo-charged US consumer spending—growing household debt and a falling savings rate—have gone into reverse. In late 2008, as households started reducing their indebtedness and saving more, consumption tumbled.
Great article from the McKinsey Quarterly. Read it now.
In the food service business I can tell you that every restaurant is dependent on the consumer having disposable income to eat out at their establishment. This article brings to light the events that continue to unfold that may cause issues with the hospitality industry and sustaining their revenue, let alone increasing it.
Two forces that until recently turbo-charged US consumer spending—growing household debt and a falling savings rate—have gone into reverse. In late 2008, as households started reducing their indebtedness and saving more, consumption tumbled.
Great article from the McKinsey Quarterly. Read it now.
In the food service business I can tell you that every restaurant is dependent on the consumer having disposable income to eat out at their establishment. This article brings to light the events that continue to unfold that may cause issues with the hospitality industry and sustaining their revenue, let alone increasing it.
