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Reason #3: Consumers are afraid to spend money

Posted Oct 24th 2009 12:00PM by Michael ShulmanMichael Shulman RSS Feed
Filed under: Recession

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Reason #3 the economy won't recover in 2010A fear of a loss of income will continue to squelch consumer spending. Most people I know are fearful about their futures -- i.e., losing their jobs or seeing a cut in commissions, profits, or wages. This means they will hang on to their pennies in 2010.

Bottom line: Consumers drive 70% of GDP, and a meaningful recovery will not happen without their dollars.

Next: Reason #4: Changing consumer attitudes

Tags: consumer spending, economic recovery, end of recession, GDP, income, Michael Shulman

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Last updated: November 25, 2009: 02:46 PM

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