Inflation: Consumer spending starting to cool
DELMARVA – Officials say inflation is still high but in order for the rate to lower it’s up to Congress.
It’s also impacting consumers and business owners right here in Wicomico County. “Consumer spending is starting to cool,” says Bill Chambers, the CEO of the Salisbury Area Chamber of Commerce.
Chambers says locals aren’t spending like they were before inflation rose following the pandemic. Educators call this an ongoing issue, the U.S. has been working on getting out of. “When they closed down the economy, unemployment went to double digits, and then it had to dig itself back out and it’s been digging itself out for the last two years,” says Professor Jan Christopher at Delaware State University.
This means consumers are “looking at higher cost of services, that impacts cash on hand for businesses. That also impacts consumer spending as their daily household bills go up, expenses go up and gasoline remains high and utilities are out of site. and they have less money to spend on disposal items,” Chambers adds.
As far as jobs go, Chambers says hiring freezes are also in place in Salisbury, along with overtime opportunities drying up. As the weather warms up, Chambers says the summer season will look a lot different. “I think you’ll see folks vacationing this summer, you’ll see more austere spending when they’re on vacation. I think you’ll see carry-out business flourish, I think indoor inside high cost, dining options are going to feel a hit this summer as well,” says Chambers.
In order to lower inflation, Delaware State University Professor Jan Christopher says it will come down to government officials. “Whether or not Congress can come up with a budget deal, and whether or not Congress will raise the debt ceiling. If that doesn’t happen then there would be a possibility of a recession at the end of the year,” says Professor Christopher.
Professor Christopher says at this point consumers just have to wait and see as the economy continues to change. Also as employees, you should brace yourself for fewer hours and your job changing, or even stocking up on food.
Bill Chambers says this will also force business owners to make some tough decisions because they won’t make the same expenditures, that is because they will need to cut expenses anywhere they can.
