Consumers “Taking a Breather”

Reports have announced that there have been increases and decreases in consumers’ spending. Firstly, the sales in clothing and footwear have gone down, compared to April last year. Another factor that contributed to less sales was the natural disaster of the Icelandic volcano. Because of the volcano, less people traveled, and less people bought from the US. However, there were increases in some areas. Sales in luxury, appliances, and electronics increased, compared to last year. Sales in appliances went up because of the housing tax credit and the appliance rebate program. Sales in electronics went up, partly because of product launches, such as the iPad. Since April was rainy, online sales went up 15.6%.

In the graph above, the effect the natural disaster of the volcano in Icleand had on the sales in the US during April is shown. The sales went down because the demand went down from the negative effect from the natural disaster. As a result, the quantity and price decreased.


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