hr: Money

The combined force of lower wages added to the overall rising prices of oil and other essential commodities is making a crucial difference in the way Americans view spending.

Since spending is by far the largest contributor the GDP, this activity is an indicator of how the US will weather this crisis. To be sure, there are fluctuations in prices, and recently, oil and gold prices have fallen. However, it takes more than just a few short term ups and down to make a consumer feel secure about essential commodities.

According to the RBC Cash poll conducted by Ipsos, 60% of the American public is now more wary of making a major financial purchase, than they were only 6 months ago. BIGresearch, a company that records consumer behaviour said tha t 53.6% were focussing more on what they needed, than on what they wanted.

The job situation is worsening with unemployment rates climbing to 5.1%, and Job losses are closing in on the figure of 250,000 for the first three months of the year. The average weekly wage of workers has fallen to $279.8.

But with the recent dollar strengthening, and the lower oil prices along with not too bad earnings from major companies, it looks as if the future is not all that bleak.