Evidence That Suggests Recent Economic Activity Has Experienced a Slowing Down Altering Future Inflation Levels

The latest press release relaying accounts and opinions on the economic setting of the moment. Several of these accounts are from authorities on the economy, such as financial advisers and economists.

Nottingham, United Kingdom (prHWY.com) September 15, 2010 - In the next few years consumer spending power may drop, according to monetary expert Michael Jones, who expressed his opinion of the outlook in his financial services column in Financial Execs PRC.

To improve and better their economic outlook and stimulate consumer spending, state figures are aiming to push forward plenty of money into national economies.

However, where will this money come from, given that a number of world economies are currently troubled? An answer to this is that governments may take drastic solutions in hand i.e. that currency will be devalued if countries print more money.

This is already happening in some countries, however it has proved detrimental to inflation figures.

Inflation is defined as too much money chasing a limited supply of goods and services, hence creating more money will just cause inflation.

The column proposes that printing money to embolden consumer spending fails to address longer term considerations and many other specialists concur.

Economist Mike Wallace, spokesman for the magazine Economy MD, commented, "Increasing the printing of money means that the value of it will go down. Prices will go up and people won't know why. The solution is to encourage outside investment and thus boost the surge of capital put back into the country by concentrating on tourism revenue."

Yet, as the government decides to pursue the strategy to siphon money from the flow of consumer spending, the likelihood of money reserves drying up completely is high.

This effect has been experienced by several different credit card issues, in fact Efenta revealed that as of next week, everyone of its clients will lose the option to renew their credit card. The company, specializing in credit cards for small businesses, announced it was closing or freezing up to one million credit accounts in order to preserve capital and cut company losses. This is not the only company making this decision. Quite a few credit card companies are rethinking their credit agreements as a way to secure the future of the company, even if only for the short term.

This perhaps explains why a lot of consumers have lost a little faith in using plastic and are rather taking their disposable income and putting right into the bank.

Michelle Smith, an economic adviser, said, "A lot of my clients have decided to open a Notice Cash ISA rather than just buying things with that money. Personally, I think they feel it is a better idea to invest that money in a good account rather than spend it on over inflated products."

As consumers tighten their wallets, commercial business owners are witnessing a short-fall. Some financial experts have been spend their time debating whether higher prices caused tighter consumer spending, or vice versa; but this is a redundant question as unless action is taken then retail shops may start to panic.

Reports from TEJ News have suggested that, "Individual spending figures have reduced by 0.3 per cent within recent months, within this market this highlights the biggest fall in that category since June 2004."

Leading economists have also suggested that the dip in consumer spending activity will continue well into the closing months of this year.

Although, financial advisers are suggesting it may be best to refrain from spending your money, save it in a specific type of account and then make sure you do not spend that money on luxury goods until some sort of recovery has been observed.

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Tag Words: free services, financial products, investment sense, financial advice, case management, notice cash isa

Categories: Business

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