Five-year low in American financial troubles calls for inventory technology
June 14, 2013
A Consumer Reports Index has revealed a five-year high in American financial sentiment, meaning companies will need to employ inventory accounting software to prepare for an increase in product demand. This is positive news for the country and businesses that are looking to grow in the coming months should take all necessary steps to keep up with the improving economy. This means being more organized and having better control of inventory so as to run a smooth and successful operation. Manufacturing inventory software can help executives do so effectively and take advantage of improving consumer sentiment.
Numbers at five-year low
The Consumer Reports Index looked at Americans' personal financial health and found that many are seeing less troubles than in previous years. The index showed 34.0, compared to 41.7 the month before. The lower the number, the fewer worries Americans have about their finances. This number is, in fact, the lowest it has been since April 2009. The number was highest in September 2009 at 68.7, though it has since fallen almost 50 percent since then. The biggest improvements in confidence were seen in households with less than $50,000, with those earning $100,000 or more coming in second. Middle-class families unfortunately saw an increase in financial difficulties.
"The data offers a glimpse that consumers may be starting to see and feel the progress of the economic recovery," said Ed Farrell, the director of consumer insight at the Consumer Reports National Research Center. "Despite the improvements, consumers are still frigid about robust spending. We are watching closely waiting to see how long it will take them to thaw out from the mindset created by the conditions of the past five years."
Importance of preparation
While consumer confidence has not yet reached ideal levels, it may be smart for businesses to make the necessary preparations for the coming months. Inventory legislation will be on the forefront of many executives minds as they look to manage internal operations for maximum success. Getting ready for the near future while not over-stocking will be a good way for companies to take on the potential increase in demand for products or services. While it is important to take into account that consumers are still facing some financial stress and employment rates have not reached pre-recession levels just yet, the most recent Consumer Reports Index shows that the economy is taking small steps in the right direction.