Retailers, car dealers and economists who plan projects based on consumer behavior are confused by the change in consumer spending pattern, according to a Georgia State press release.
Price competition and discounted deals have contributed to an increase in lowered vehicle prices, according to the release. Housing rates also decreased but there was a shortage seen in furniture departments.
Rajeev Dhawan of the Economic Forecasting Center at Georgia State’s J. Mack Robinson College of Business said there is a puzzle seen in furnishing purchases in his Aug. 27 Forecast of The Nation, according to the release.
Dhawan also said if there’s an income growth then the pattern can also change in the future.
“Before consumers were rational whereas to now they are more careful with their spendings,” he said.
The health and stock market will also be critical. The federal reserve will raise rates after settling its bond buying program in October, leaving the stock market in danger until it increases again, according to Dhawan’s release.
Every student should take economics class to learn how to spend money effectively, according to Dhawan.
“Economics is nothing but common sense. Everyone, whether economics major or not, should have this common sense,” he said.
Raj Patel, economics student, said the current economic situation is in a recovering stage.
“Financial institutions are getting stronger compared to 2008-2009. We have taken reforms to make the economy more flexible,” he said.
MBA student Earnest Maydai said industries are forced to lower prices not enough buyers are present and companies create deals to attract more consumers with the potential to change an industry.
“People are becoming more aware of the producers tricks which is why they shop smartly now,” he said.
Dhawan also predicted the employment future in his release and said that jobs in professional and business services will grow by 25,500 this year.
