Consumer Confidence Rising Going Into the New Year
The world economy has been slow to stabilize following the recession that began five years ago. In the U.S., high unemployment and low consumer confidence have led to a stagnating economic situation that is slowly crawling back.
One of the market segments to weather the crisis well is the technology market. It seems that consumers have been saving their funds for larger purchases such as smartphones and tablets – particularly during the holiday seasons.
This week the Consumer Electronics Association (CEA) revealed that its consumer confidence index for December is maintaining its higher November levels. The firm’s rating for December is even up slightly from last month.
The CEA cites the coming end of the federal reserve’s stimulus programs as a major factor in the improved consumer outlook on the U.S. economy.
“Consumers are closing out the year with a decidedly optimistic view as the sentiment index recovers lost ground from earlier this year,” said Shawn DuBravac, chief economist at CEA. “Recent announcements regarding Federal Reserve policy, as well as improving economic fundamentals, reaffirms that 2014 will begin on more solid footing than we’ve seen in the last five years.”
Though the tech industry enjoyed massive Black Friday sales this year, it seems that consumers are broadening their spending habits this year. The CEA’s report shows that consumer tech spending expectations fell slightly in December. This follows previous findings from the CEA that showed consumer tech spending expectations rising throughout the late summer and fall.
“Despite a small decrease, December sentiment levels are holding onto the positive momentum gained in October and November,” said DuBravac. “We are watching tech sentiment closely as key areas of growth – namely tablets and smartphones – will begin to slow naturally in 2014. However, several areas, such as wearable tech devices, will see gains as consumer awareness about these products continues to increase.”