Payday loans more popular
More people are discovering payday loans can help in tough economic times. As more consumers from different demographics are exercising their financial options, the retail market took an unexpected turn in January.
Sliding sales pattern broken
For the first time in six months, the downward spiral that has been plaguing U.S. retail sales came to a stop. In fact, retail sales rose 1 percent after six straight months of decline. Sales had fallen 3 percent in December.
But not for long
Of course, economists and other market analysts warn that this seems too good to be true. Jobs are still being lost every day, and that means this increase in spending will not last long, according to Tom Porcelli, a senior economist at Castlestone Management Ltd.
Payday loans and spending linked?
Economists do not draw any parallels between payday loans and increased spending. Instead, they say the higher sales are because of higher gas prices and post-holiday sales.
Economists see no sea change
Market analysts are quick to say that this does not signal a change in the economy.
Economists anticipate household purchases will tumble further in the first half of the year, underscoring the case for the $789 billion stimulus package under debate in Congress, according to Bloomberg.com.
About that stimulus package
Congress has resolved a disagreement regarding spending on education in the stimulus package. It is expected that lawmakers will hold a final vote on the bill before the weekend, and the bill will be on President Barack Obama’s desk before Monday.
If the bill passes, implementation will begin immediately. This could potentially throw off the economists’ doom and gloom predictions. The bill is designed to create 3.5 million jobs.
For those who might be the lucky recipients of those jobs, check out this article on how payday loans can help when you are starting a new job.
Related articles
- U.S. employers cut 598,000 jobs in January (cbc.ca)
- The Country with the Best Bailout Is… (time.com)
On handling the stimulus: 67% approval vs. 31% approval (americablog.com)
This is good news. Consumer spending is the exact instrument that has gotten us out of every previous recession, and it is what will get us out of this one. I mean, everyone shouldn’t go crazy and irresponsible, but a little here and there from everyone will go a long way, and it seems it is starting to.