# data[].attributes.body
The following content is represented by jinal patel.

# data[].attributes.body
here i am going to share some ideas about the importance of the consumers on the any country's economy through videos and some of images with descriptions.

# data[].attributes.body
here, is the short video represented that how a consumer can increase or decrease economy. economy is totally depends on consumers. there is an example of the coffee shop and consumer. there is in talk about consumers vs producers and some of the assumptions about the consumers. as a consumer does not matter that what you buying, you are just being part of the economy.

# data[].attributes.body
here,is the link about how much consumers spending to buy their daily household and what are the impacts on the economy and how it is works. there are also some of the determinants of consumer shopping such as disposable income, income per ca pita, income quality, household debt, and consumers expectations. and in the end it saws how its affects on economy.

# data[].attributes.attachment_link.readable_text
Consumer spending is what households buy to fulfill everyday needs. This private consumption includes both goods and services. Every one of us is a consumer. The things we buy every day create the demand that keeps companies profitable and hiring new workers.

Almost two-thirds of consumer spending is on services, like real estate and health care. Other services include financial services, such as banking, investments, and insurance. Cable and internet services also count, and even services from non-profits.

The remaining one-third of our personal consumption expenditure is on goods. These include so-called durable goods, such as washing machines, automobiles, and furniture. More frequently, we buy non-durable goods, such as gasoline, groceries, and clothing.

Five Determinants of Consumer Spending

There are five determinants of consumer spending. These are the things that affect how much you spend. Changes in any of these components will affect consumer spending.

The most important determinant is disposable income. That's the average income minus taxes. Without it, no one would have the funds to buy the things they need. That makes disposable income one of the most important determinants of demand. As income increases so does demand. If manufacturers ramp up to meet demand, they create jobs. Workers' wages rise, creating more spending. It's a virtuous cycle leading to ongoing economic expansion. If demand increases but manufacturers don't increase supply, then they will raise prices. That creates inflation.

The second component is income per capita. It tells you how much each person has to spend. Income measurements might rise just because the population increases. Income per person reveals whether each person's standard of living is also improving.

Income inequality is the third determinant of spending. Some people's income may rise at a faster pace than others. The economy benefits when most of the gain goes toward low-income families. They must spend a more significant share of each dollar on necessities until they reach a living wage. The economy doesn't benefit as much when increases go toward high-income earners. They are more likely to save or invest additions to income instead of spending.

The fourth factor is the level of household debt. That includes credit card debt, auto loans, and school loans. Current consumer debt statistics show that household debt has reached new record levels. Surprisingly, high health care costs are one of the biggest causes of overwhelming debt.

The fifth determinant is consumer expectations. If people are confident, they are more likely to spend now. The Consumer Confidence Index measures how confident people are about the future. It includes their expectations of inflation. If consumers expect inflation to be high, they will buy more now to avoid future price increases. That's why the Federal Reserve targets a 2% inflation rate.

How It Affects You

Consumer spending is the single most important driving force of the U.S. economy. Keynesian economic theory says that the government should stimulate spending to end a recession. On the other hand, supply-side economists believe the government should cut business taxes to create jobs. But companies won't boost production without demand no matter how low taxes are.

If you doubt this, think about what would happen if everyone stopped spending. Businesses would eventually go bankrupt and lay off workers. The government would then have no one to tax.

The economy would have to rely on exports, assuming other countries kept up their consumer spending. Borrowing would keep the government and factories open. These additional components of the gross domestic product aren't as critical as consumer spending.

Even a small downturn in consumer spending damages the economy. As it drops off, economic growth slows. Prices drop, creating deflation. If slow consumer spending continues, the economy contracts.

But too much of a good thing can also be damaging. When consumer demand exceeds manufacturers' ability to provide the goods and services, prices increase. If this goes on, it creates inflation. If consumers expect ever-increasing prices, they will spend more now. That further increases demand, forcing businesses to raise prices. It becomes a self-fulfilling prophecy that 's hard to stop. That's why the primary mandate of the nation's central bank, the Federal Reserve, is to ward off inflation.

How Consumer Spending Is Measured

Consumer spending is measured in many different ways. The most comprehensive is the monthly Personal Consumption Expenditures (PCE) report.

The Consumer Expenditure Survey is released in August each year by the Bureau of Labor Statistics. It is similar to the PCE but has a little more detail about types of households. That's because the BLS analyzes data from the U.S. Census. The BLS releases the most current report in September each year.

Retail sales is another component of consumer spending. You can check how healthy it is with the most recent retail sales statistics.

The Bottom Line

Consumer spending drives a significantly large part of U.S. GDP. This makes it one of the biggest determinants of economic health. Data on what consumers buy, don't buy, or wish to spend their money on can tell you a lot where the economy may be heading. Watching the trend on consumer spending can serve as an invaluable tool for managing your investments.

# data[].attributes.attachment_link.title
What You Buy Every Day Drives U.S. Economic Growth

# data[].attributes.attachment_link.description
Consumer spending is what households buy to fulfill everyday needs. This private consumption includes both goods and services. Every one of us is a consumer. The things we buy every day create the demand that keeps companies profitable and hiring new workers. Almost two-thirds of consumer spending is on services, like real estate and health care.

# data[].attributes.body
here, is the video about economy is depends on jobs and consumers. but there is no job, no consumers leads to no economy. there is an example for economy of the USA. consumers will be only able to buy something if they have jobs. they are no gonna to purchase anything leads toward worst part fir the economy system.

# data[].attributes.attachment_link.title
'No Jobs, No Consumers, No Good Economy'

# data[].attributes.body
here is the another video if the importance of the consumers on the economy. why economy is important. economy is social science that analyzes production distribution and consumption of goods and services. it all about how we behave, business behave and government behave.

# data[].attributes.body
here is the image showing how a person can play a role to increase economy.

# data[].attributes.body
here the results showing that how economy can be changed with consumption. there is chart of market price against equilibrium quantity .

# data[].attributes.body
economy is based on how consumers can be satisfied from their goods services. for that any business need to see about which products are on the demand and what are the ways from consumers can reach at easily .

# data[].attributes.attachment_link.readable_text
Consumers are the basic economic entities of an economy. All the consumers consume goods and services directly and indirectly to maximise satisfaction and utility.

Consumers have limited income and by which they want to satisfy their maximum utility (utility is the want satisfying capacity of a commodity).

Generally, consumer means an individual only; however, consumers will consist of a particular individual, a group of individuals, institutions etc.

Types (Kinds) of Consumers:
According to the nature of consumption, consumers are of following types:
History tells us that at the very early stage of civilisation producers produced all the basic needs of life for themselves and their families. All the basic needs like food, clothing and shelter they produced for their own and their family's consumption. Hence, the producers were producing goods for their self- consumption. Thus, they were called as direct consumers or direct producers also.
(ii) Consumers by Exchanging Products:
With passage of time and civilisation people understood the benefits of exchange. Hence, they tried to specialise on a particular or few products and then tried to exchange the product with the other product(s). The exchange started with barter system and now continuing with monetary system.

This will create the concept of marketable surplus, i.e., the producers are not only producing goods for self-consumption, but some excess or surplus product(s) they are keeping to get other product(s) in exchange. For example, a farmer producing pulse not only for self-consumption but the extra or surplus pulse he will exchange with the producer of other product, say paddy.

These consumers only go to the market to buy the goods and services available in the market through money only. Here, the producers are also producing goods or services directly sent to the market for the consumers. These consumers buy all the goods and services in lieu of money. The modern consumers are the outcome of monetary system.
The importance of consumers in different avenues is discussed below:
Importance (Significance) of Consumers:
(ii) Create Demand for Various Products:
Consumers are the main source of demand for all the goods. The producers of industrial goods or the producers of agricultural products are all producing the various items according to the demand in the market. According to Prof. Marshall, it is the demand which controls the production or market. Hence, the consumers create demand in the market and producers produce goods or services accordingly.
(iii) Increase Demand for Consumer Goods: (iv) Enhance Service Diversification:
The different consumers have different types of demand or a single consumer can also demand different types of products. These will encourage the producers to produce various types of products in the market. For example, some consumers want to consume paddy, whereas some consumers want to consume wheat.

However, there are some consumers; who want different qualities of paddy and wheat also. Thus, there are some consumers who prefer red colour soap whereas other' consumers prefer green colour soap. Therefore, to satisfy all the types of consumers, producers must increase the production of various products.

Consumers create more demand for all the types of consumer goods, like durable, semi- durable and perishable goods. Durable consumer goods include furniture, utensils, televisions, etc. and for semi-durable goods like clothes, books, shoes etc. On the other hand, perishable goods like bread, butter, vegetables, fruits etc. are all demanded by the consumers for their consumption purposes. Naturally, all these create an atmosphere to increase demand for consumer goods.

Consumers not only consume different varieties of goods, but also consume large varieties of services to maintain the standard of living. These include health service, educational service, banking and insurance service, transport and communication service, etc. Day by day the consumption of these services is rising. This will lead to expansion or enhancement of service sector within the economy.

# data[].attributes.attachment_link.title
Consumers: Types and Importance of Consumers

# data[].attributes.attachment_link.description
ADVERTISEMENTS: Consumers are the basic economic entities of an economy. All the consumers consume goods and services directly and indirectly to maximise satisfaction and utility. Consumers have limited income and by which they want to satisfy their maximum utility (utility is the want satisfying capacity of a commodity).

# data[].attributes.body
it is also important to built consumer's confidence to keep buying that things.

# data[].attributes.attachment_link.readable_text
There is little question that consumer spending fuels most developed service-based economies, including the U.S. where it represents about 70% of gross domestic product (GDP). While measuring this spending is rather straightforward, predicting future trends can be very difficult given the fickle and scattered nature of consumers on an aggregate basis.

Economists solved this problem by developing what is now known as the Consumer Confidence Index (CCI). By questioning a statistically significant number of people residing within a given country, these surveys aim to measure the degree of optimism that consumers feel about the overall state of a country's economy, as well as their own personal financial situation.

International investors pay close attention to these surveys since they can serve as a great leading indicator for the overall economy. When consumers are confident in their futures, they tend to spend money and drive economic growth higher. When consumers aren't confident, they tend to save rather than spend and perhaps constrain economic growth.

In this article, we will look at how consumer confidence surveys work and how investors can use that information to make better decisions.

There are many different types of consumer confidence surveys being used around the world, but most of them operate in a similar way. Based on a probability-designed random sample, the surveys simply ask a series of questions designed to assess the consumer's current and future outlook to capture their views of the economy and financial situation.

Questions typically cover things like:

Current business conditions.

Business conditions over the next 6-12 months.

Current employment conditions.

Employment conditions over the next 6-12 months.

Total family income over the next 6-12 months.

Participants are generally asked to answer each question as "positive", "negative" or "neutral", which are scored as "1", "-1" and "0", respectively, and added up to calculate a "relative value". This value is then compared to a baseline "index value", which is often the initial value taken when the surveys first began - often several decades ago. Finally, these index values are averaged to produce an aggregate value that's commonly reported.

The goal of consumer confidence surveys is to predict future consumer spending patterns with the premise that more confidence leads to more buying and stronger economic growth.

There are many different measures of consumer confidence used around the world. Companies like Neilsen regularly survey consumers in more than 50 different countries, while many countries have various organization that calculates their own indices.

Some of the most popular indices include:

Canada: Conference Board of Canada's Index of Consumer Confidence

India: BluFin Consumer Confidence Index

Israel: Globe's Israeli Consumer Confidence Index

Spain: Instituto de Credito Oficial Spanish Consumer Confidence Index

Britain: GfK's Consumer Confidence Barometer

Global: Nielsen Global Online Consumer Survey

Consumer confidence data is an extremely important leading indicator for investors given its ability to predict consumer-spending patterns. These spending patterns can be useful predictors of everything from gross domestic product (GDP) growth to the effectiveness of monetary policy in combatting low unemployment and inflation.

Here are a few common uses:

Leading Indicator: Consumer confidence indices can be used as a leading indicator for a broad economic turnaround, including resumed growth in GDP.

Policy Effectiveness: Consumer confidence can be used to gauge the effectiveness of a monetary policy, stimulus or other measures used by regulators to jumpstart growth.

Retail Sector: Consumer confidence is particularly important in the retail and luxury goods industries since their revenues are highly correlated with spending patterns.

# data[].attributes.attachment_link.title
Consumer Confidence and Its Impact on the Markets

# data[].attributes.attachment_link.description
There is little question that consumer spending fuels most developed service-based economies, including the U.S. where it represents about 70% of gross domestic product (GDP). While measuring this spending is rather straightforward, predicting future trends can be very difficult given the fickle and scattered nature of consumers on an aggregate basis.

# data[].attributes.body
here is last video about the economy index which are indirectly connected to the consumers.

# data[].attributes.body
here is the link for consumer's economy which are affected by several impacts.

# data[].attributes.attachment_link.readable_text
A consumer economy describes an economy driven by consumer spending as a percent of its gross domestic product, as opposed to the other major components of GDP ( gross private domestic investment, government spending, and imports netted against exports).

In the U.S., it is usually said by economists, including in Henry Hazlitt's " Economics in One Lesson" that 70% of spending is consumer-based, but this number is disputed by economists like Businessweek columnist Michael Mandel,.

The absolute income hypothesis argues that income and demand generate consumption, and that the rise in GDP gives life to a rise in consumption. It was popularized by Keynes. Milton Friedman argues for a permanent income hypothesis, that consumption spending is a function of how rich you are.

Absolute income was theorized by Keynes. Its model is Ct=λYt. He believed that consumption at a certain time could be determined by marginal propensity to consume multiplied by income at that particular time.

Permanent income was theorized by Friedman. Instead of marginal propensity to consume, it theorizes "consumption smoothing", where people spread out changes in income using borrowing (e.g., credit cards).

Charles Hugh Smith, writing for Business Insider, argues that while the use of credit has positive features in low amounts, but that the consumer economy and its expansion of credit produces consumer ennui because there is a marginal return to consumption, and that hyperinflation experts recommended investment in tangible goods. Smith raises the issues of storage and maintenance of goods as limitations and problems of the consumer economy, as demand will eventually have to stagnate and credit will one day be denied. https://www.businessinsider.com/the-devolution-of-the-consumer-economy-2011-4

This section needs expansion. You can help by adding to it.

Many capitalist countries have an economy that is driven by the economic activities of its constituents. England and America have particularly influential economies.

The consumer revolution in England is generally understood to have been in the eighteenth century, although the concept of consumerism was perceived to have appeared in the late 1500s and 1600s. Prior to this, the Middle Ages were understood to have been a time of perpetual material poverty, in which the concept of the commodity or the concept of the consumer did not exist. Maryanne Kowaleski argues against this view, arguing that medieval charity, instructional guidebooks, and population growth (parallelled by that of currency), created a consumer economy in the pre- Great Famine era Research by people like Britnell and Campbell suggest commercialization first appeared in the medieval period, and researchers like Christopher Woolgar have studied consumption practices in elite households.

In their economy, they had many exotic items (because of the imperial conquests of the British Empire) and it created an environment for a desire-based mode of shopping that was pleasurable, not mundane. Romantic literary critic Andrea K. Henderson argued that this influenced Romantic-era poetry because the poets were often part of an urban society. desiring things that could not be easily attained and were unavailable. This influenced their interpretation of things like the past, and the non-urban natural world, because they had to construct narratives to understand things that were unaccessible to them.

Historical

In an essay for the book "An Emotional History of the United States", Susan J. Matt describes "aspirational envy" within the middle class toward the "bourgeois", during a period with a pool of goods that was growing rather than remaining finite.

The US consumer economy in the 1920s included many leisure items and products that improved housework. They introduced advertising to sell goods and department stores were created. They introduced lines of credit and installment plans to consumers who could or would not buy things immediately.

Consumer spending in the US rose from about 62% of GDP in 1960, where it stayed until about 1981, and has since risen to 71% in 2013.

In the first economic quarter of 2010, a report from the Bureau of Economic Analysis in the U.S. Department of Commerce stated that real gross domestic product rose by about 3.2 percent, and that this represents a difference from the fourth quarter of 2009. In that fourth quarter real GDP increased by 5.4 percent. It states that "[t]he increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, and nonresidential fixed investment that were partly offset by decreases in state and local government spending and in residential fixed investment."

According to Kevin O'Marah of magazine, Africa's consumer economies remained "buoyant" despite the worldwide collapse in the commodity industry, despite the fact that commodity extraction industries have long dominated the region.

Some analysts, including an anonymous columnist at The Economist stated in 2014 and early 2015 that China was likely to become a consumer economy. They regarded it as the second biggest consumer.

The GDP in the country grew 6.3% in 2015. Their inflation rate was about 1.4%, and the service sector had grown, becoming a large part of GDP. The economy did not generate a large amount of savings, despite the fact that the 6% growth during the economic recovery of the 3rd and 4th quarter was largely driven by consumer spending.

# data[].attributes.attachment_link.description
A consumer economy describes an economy driven by consumer spending as a percent of its gross domestic product, as opposed to the other major components of GDP ( gross private domestic investment, government spending, and imports netted against exports).