Evidence That Suggests Recent Economic Activity Has Slowed Down Changing the Landscape of Inflation

In the coming years consumer spending power may drop further, as stated by financial expert Michael Jones, who recently commented on this issue in his financial services column in Financial Execs PRC.

To revitalise and strengthen their economies and spur consumer spending, global heads are hoping to make national economies better by injecting more cash into them.

But how can we source money for this much-needed cash boost given many world currencies are suffering? The concern is that governments may resort to drastic solutions in order to get out of an economic slump i.e. that inflation could rise if countries print more money.

This happening is already under way in some areas, yet all this seems to be creating is inflation.

Inflation is defined as too much money chasing a limited supply of goods and services, so printing more cash will just lead to inflation.

The article hints that using money printing as a way of encouraging consumer spending is a short-sighted measure and many financial experts agree.

Economist Mike Wallace, spokesman for the magazine Economy MD, commented, "Quite simply, the more money a country prints, the lower the value. Prices are bound to increase greatly and this doesn't impress consumers. However, the solution is to increase outside investment to bring an upsurge of capital back into the country by boosting support in the tourist industry."

However, as the government's spending committees agree to draw funds off of consumer spending, the likelihood of money reserves drying up completely is high.

This effect has been felt across the board with one credit-card issuer Efenta confirmed that as of next week, all of their paying customers will be unable to receive a new credit card. The business, a specialist in credit for little companies, has actually confirmed that there are plans to freeze over 100,000 credit card accounts in an attempt to prevent money from going out of the company. There are also other examples of this type of decision. Many credit card companies are rethinking their policies in an attempt to reduce their overall risk exposure.

This perhaps explains why a lot of consumers have lost a little faith in using plastic and are instead placing the last of their money into a secured bank account.

Margaret Smith, a financial adviser, said, "Quite a lot of my customers have made the decision to take out a Notice Cash ISA rather than just spending that money. In my opinion I think that they feel that it is better to save their money rather than spend it on over inflated products."

As average consumers minimise their spending, the retail industry is 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 mute point because unless some sort of plan is devised then retailers may be put in an uncomfortable position.

Reports from TEJ News have suggested that, "Individual consumer spending has seen a decrease by 0.3 per cent within the past couple of months and this indicates within the current climate the biggest decrease of this type since June 2004."

Financial experts have come to the verdict that lowered consumer spending activity will be evident well into the end of this financial quarter.

However, experts are advising consumers to be frugal and to keep on to your money, put it into a specific account and then try not to spend that cash on luxury items until some sort of recovery has been observed.

For more information see following link:
http://www.investmentsense.co.uk/free-services/best-buy-savings-accounts/notice-cash-isa/

The Notice Cash ISA could be the best option if you are looking for a better rate of interest than you get with an instant access Cash ISA and are happy to wait for a short period of time before you can withdraw your savings.

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This release was published on openPR.