Growth In Income, Spending Across US
Owners considering a small business working capital loan will be pleased to hear U.S. consumers are spending more.
Data from the U.S. Department of Commerce shows Americans increased their spending by 0.5 percent during August. This comes on the heels of stagnant activity in July, making it the best monthly result since the 0.5 percent expansion in June.
Millan Mulraine, an economist at TD Securities in New York, told Reuters this data represented “a further signal that the positive momentum in domestic activity is being sustained.”
Another positive note coming from the Commerce Department’s analysis concerns personal income. This number increased by $47.3 billion in August, up 0.3 percent. More specifically, disposable personal income rose by $35.2 billion, also a 0.3 percent increase.
This could be contributed to growth in private wages and salaries, which saw a rise of $30.4 billion during August, up from a $17.4 billion increase in July.
“Goods-producing industries’ payrolls increased $6.0 billion, compared with an increase of $1.2 billion; manufacturing payrolls increased $3.6 billion, in contrast to a decrease of $0.8 billion,” stated a release from Bureau of Economic Analysis. “Services-producing industries’ payrolls increased $24.6 billion, compared with an increase of $16.2 billion. Government wages and salaries increased $1.4 billion, compared with an increase of $1.1 billion.”
In short, Americans are making more money, and this is translating into more spending at businesses. However, in order to benefit from this increase in consumer activity, small businesses must ensure they have inventory, equipment and staff necessary.
This can be easier said than done without the right help. Fortunately there are a number of options businesses can use to boost cash reserves and smooth out operations. From equipment leasing to business capital loans, there are alternatives available to help business owners make the most of renewed economic activity.