Cautious consumers had stopped shops from gaining more revenue during a time aggressive sales records are needed to ensure economic stability.
Coupled with investor scares regarding the Federal Reserve’s plans to increase interest rates for low unemployment and apparent inflation, things aren’t going so well for the US economy.
According to the March manufacturing PMI report, Monday’s spending data included downward revisions to January’s numbers. A drop from 0.5pc to 0.1pc on a month-to-month surge experts consider the weakest result the US had over a year.
Savings rates climbing to their highest point that rivalled 2012 figures is evidence that US consumers don’t want to go out and spend more.
The Federal Reserve is helpless. As it continues its ultra-cheap monetary policy to stabilise the economy, its sufficiency doubles economic breakdown risks. Unemployment had not improved and inflation is highly likely with the increased surplus in goods due to poor consumer activity.
The Fed will need to increase interest rates else the US dollar may collapse.
Investors are watching stocks closely until the Federal Reserve finalises a decision to go or not go with interest rate hikes.
Federal Reserve Representatives said to the US media that they are often meeting to discuss possible rate increases to downplay the negative interest rates in the country.