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Consumers may be spending more cash

July 20, 2013

Analysts across the U.S. still argue about which direction the economy is headed in. One could argue evidence points to continual, slow-but-steady strengthening of the market based on an upward tick in consumer sentiment and spending figures.

Analysts across the U.S. still argue about which direction the economy is headed in. One could argue evidence points to continual, slow-but-steady strengthening of the market based on an upward tick in consumer sentiment and spending figures.

For instance, consumer spending rose to 4.3 in June, up from 4.2 a month earlier, according to a report from Deloitte. The slight improvement in the firm’s Consumer Spending Index was due to many economic improvements, especially those related to consumers.

Deloitte noted unemployment claims experienced a notable drop in the past year, while there also no decline in the overall wage average. Home prices also increased significantly in the past several months, which may play a role in further economic amelioration in the months ahead.

“Strengthening housing and job markets can have a profound impact on consumers’ ability and willingness to spend,” said Daniel Bachman, senior U.S. economist at Deloitte. “Improvement has been slow but steady month to month, and both housing and employment have regained their footing since last year. Consumers appear to have adjusted to the effects of higher tax rates and the sequester, which has also helped sustain household spending.”

With more consumers’ money matters bettering recently, this could lead to increased shopping at retailers of all sizes nationwide. In the coming months, many businesses may want to consider mobile credit card processing because of both improving shopper confidence and technological advances.

A report from Mobile Payments Today noted that the level of smartphone-based payment options may pick up notably by 2015. There could be more than 1 million people using this technology during that period, while approximately 1 billion smartphones will be used throughout the world by that point.

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