Consumer Confidence in the Economy reaches Second-Highest Level since 2008

Jun 24, 2014

The Conference Board Consumer Confidence Index has improved since May. The index stands at 83.0, which is up from 81.7 in April. This continued boost in U.S. consumer confidence is at the second-highest level since 2008.

According to Bloomberg, Joe LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York stated that “Rising home prices certainly are making households feel better, and higher net wealth with rising equity portfolios, those things are helping households feel healthier.”

It would seem that, upon assessing current conditions, consumers have a more favorable outlook on the economy in regards to the short-term. They were also more positive about jobs and personal finances. According to Bloomberg, payrolls climbed by 288,000 workers in April; this is after seeing a 203,000 increase in the previous month.  Bloomberg also reported that the unemployment rate fell to 6.3 percent; this is a decrease from the 6.7 percent reported in March.

As far as business conditions, ACA International reported that “Consumers’ assessment of present-day conditions improved in May. Those stating business conditions are “good” decreased to 21.1 percent from 22.2 percent, while those stating business conditions are “bad” declined to 24.1 percent from 24.8 percent.”

An important key to understanding how consumers view the economy is to research their feelings concerning the labor market. In the report from May, consumers were positive about the outlook on the labor market. Those anticipating jobs becoming available in the next few months increased from 14.7 percent to 15.4 percent.

However, consumers revealed mixed feelings when it came to their income. The percentage of consumers expecting their incomes to increase has moved from 16.8 to 18.3, another positive increase in consumer confidence. However, those expecting a plunge in their incomes also increased from 12.9 to 14.5.

According to an article by Jeanna Smialek of Bloomberg, “Higher stock prices and home values are underpinning sentiment for some Americans. A broadening of the pickup in employment that leads to stronger wage gains would help to further boost sentiment and propel the consumer spending that accounts for almost 70 percent of the economy.”

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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