Report Highlights Rising Consumer Confidence
Organizations looking to expand with business equipment leasing have more reason to be optimistic, according to a recent survey from Absolute Strategy Research.
The organization reported responses regarding U.S. household finances from August 2014 showed more confidence among consumers, combating the popular notion that Americans are still suffering from nominal wage growth and other negative economic factors.
“This improvement in U.S. households is apparent across a range of indicators,” ASR stated. “Most striking has been the turnaround in how people perceive their financial situation. Job security is on the rise, risk appetite is improving, and housing is recovering strongly.”
ASR continued by saying that if U.S. wages accelerate to 3 percent over the next three quarters and unemployment falls to 5.5 percent, America could switch from an export-led economy to one with a greater domestic focus.
Such activity isn’t out of the realm of possibility, as recent data from the U.S. Department of Commerce shows rising wage growth is adding up to increased personal income for consumers. In fact, disposable personal income rose by $35.2 billion on a month-over-month basis during August.
Meanwhile, the Bureau of Labor Statistics stated that employers added 142,000 jobs during August, dropping the unemployment rate from 6.2 percent to 6.1 percent, according to Forbes. This comes on the heels of 212,000 jobs being added to the economy during July.
“Most striking has been the turnaround in how people perceive their financial situation,” ASR continued. “Back in June 2010, a net 80 percent worried about their financial predicament; by August 2014 that number has fallen to a net 66 percent – the best result recorded in the 11 waves we have conducted.”
In fact, one in six respondents say they no longer worry about their financial well-being, with more people describing themselves as “better off” than “worse off” over the past year – the first time such a result has occurred since the survey began.
The right environment for expansion
With wage growth rising, unemployment falling and more Americans feeling optimistic about their finances, now might be the ideal time for small businesses to consider expanding. This is especially true with the holiday shopping rush right around the corner.
Equipment leasing will allow businesses to obtain the tools they need for expansion efforts while also letting them keep cash reserves sufficient, making it easier to divert funds to expanded staff and inventory. Additionally, the tax advantages of leasing equipment add yet another bonus for businesses exploring this option.