As the Great Recession fades into the past, businesses can take comfort in the fact that consumers are again willing to spend money both in stores and online. A new study conducted by Mintel confirmed this fact and found that U.S. consumer spending surpassed $10 trillion in 2013 alone. This figure is set to rise by about 3 percent in 2014, the report stated, giving hope that businesses may see improved sales figures as the year goes on.
“In 2014, it appears that America has finally stopped holding its collective breath, waiting for the other economic shoe to drop,” said Fiona O’Donnell, category manager, multicultural, lifestyles and leisure at Mintel. “After five years of slow but steady growth, Americans have passed the tipping point of prolonged economic worry and have cautiously accepted that things are better. Confidence in personal finances has allowed consumers to think about the future and look forward rather than linger over the past.”
The study also found that total U.S. consumer spending is projected to increase by approximately 20 percent between 2013 and 2018, while spending increased just 15 percent between 2008 and 2013. More specifically, spending on non essentials such as leisure and entertainment is expected to increase by 28 percent, while vacation and tourism spending is set to expand by 27 percent and tech and communications spending will increase by 25 percent. This growth will leave businesses poised for significant financial gains and expansion over the next several years.
With the economy in a state of recovery and growth, many business owners may be considering expansion, whether by moving to a new location, taking on new hires or upgrading operations and company practices. Those interested in expanding should contact National Funding to gain access to the small business working capital they will need to carry out their plans.