Consumers more confident in economy now than in almost 17 years
JEFFERSON CITY —
The Consumer Confidence Rating was the highest it has been in almost 17 years. The rate rose to 125.9, the highest since December 2000 when it 128.6.
One business professor at William Woods University said a higher consumer confidence simply affects spending.
"It's whether or not the consumers have confidence in the economy or not or whether they're willing to go out and spend money buy things or they're trying to hoard and save their money while they're worried about bad times," Marketing professor, David Forster said.
Forster said consumers have a higher confidence in the economy due to a lower unemployment rate and a booming stock market.
"Simply people have jobs and when they have jobs they will spend more," Forster said.
Forster said people are excited about the next couple months in the economy. Those coming months include holiday shopping.
"The projections for the holiday season are very high. The projections I've seen consumers are going to spend probably over a trillion dollars this year during the holiday season. That's going to be up somewhere between they're predicting 3.5 to 5 percent in the last year," Forster said.
The spending he said could create a boom in business for some retailers, but others could struggle to capitalize on the excitement.
"Where are they going to spend that money? I know Amazon has a very rosy outlook for this holiday season. I saw a survey the other day where 90 percent of Amazon Prime users are planning on buying through Amazon. Not everybody will be successful this holiday season though. It will be interesting to see if your traditional brick and mortar stores are going to be able to take advantage of this consumer confidence," Forster said.
Forster said in order for tradition brick and mortar stores to succeed, they need to offer consumers something they cannot get online. He said this is where small businesses can thrive because when more people have jobs and economic confidence, they are willing to spend more money.