The US presidential campaign could get seriously affected with the stop and go progress of the economy. The rapid changes in the different sectors of the economy are sending mixed signals to both the consumers and the investors alike. For instance, it has been observed that although consumer confidence is high, they still are not spending too much on goods. The unemployment rate has gone down but that’s because a lot are no longer seeking employment. The prices of homes and stocks have gone up but workers’ pays are still the same.
According to the most recent report, the current growth rate of the US economy is stuck at 1.3 percent annually. Economists interpret this growth rate as too weak to actually reduce the unemployment rate. So as a result, Americans are expected to reduce loan debts instead of going on a spending spree. Meanwhile, builders are building homes on a cautions pace and businesses think twice before hiring.
The end result of these cautious steps especially when it comes to bad credit loans is to help rebuild consumer wealth, which would later on boost consumer spending and job growth. However, it’s taking a long while before results could actually be seen.
Housing Value Continues To Increase
If there is one thing that remains stable despite the rapid changes in the US economy, it is the fact that housing is still considered as a very valuable property. Hence, as the value of homes increase, homeowners become wealthier and more confident. And when you feel richer and more confident, it is expected that you will likely spend more not just on goods but also on bad credit loans.
In fact, the increase of housing value in August equals the boost in consumer spending for that month. Key aspects that consumers are no longer afraid to spend more would be on loans for emergency needs, food, utilities, mortgages and even on gas.
The only thing that’s keeping consumers from spending freely would be the lack of income adjustments. That is why you can still see a lot of employees dipping into saving just to keep up with possible emergencies and risks of sudden unemployment.
Meanwhile, firms responsible for the distribution of unemployment benefits have developed a reliable system of tracking claims. Based on their data, it appears that there has been a drop in the number of claims filed and that clearly indicates that companies are no longer laying off people.
Whoever wins the presidential election has a lot of work to do.