GDP GROWTH SLOWED IN Q4 AS U.S. ECONOMY EXPANDED 2.4% IN 2014
[Feb. 2, 2015] The U.S. downshifted slightly in the fourth quarter of 2014 after surging from July through September. The Commerce Department revealed Friday (Jan. 30) that gross domestic product - the value of all goods and services produced by the U.S. - grew at a 2.6% pace during the quarter, far below the Q3:14 5.0% pace that was the strongest in 11 years. A separate report showed Americans cut spending in December by the largest amount in five years, paying less at the gas pump and buying fewer cars and trucks. Still, incomes posted a solid again in the final month of 2014, and falling inflation is allowing Americans to get more bang for their buck.
Spending in the first few months of the fourth quarter was more than enough to offset the December decline and deliver the biggest increase in consumer outlays since 2006. Consumer spending in December fell a seasonally adjusted 0.3% to mark the biggest drop since September of 2009, with the biggest cuts coming on automobiles, gas, utilities, groceries, clothing, home furnishings, and TVs. When adjusted for falling inflation, the decline in consumer spending was a more modest 0.1%.
As reported by MarketWatch, the U.S. economy grew at a 2.4% rate through 2014, slightly faster than the 2.2% gain in the prior year. Consumer spending was a major positive in the fourth quarter, expanding 4.3%, the fastest pace since before the financial crisis. Still, growth was slowed somewhat by weaker business spending, a drop in federal government spending, and net exports. Economists say the pattern of strong consumer spending and weak business spending should persist in the first quarter as a result of the sharp drop in oil prices. "The economy is also showing more signs of lopsided growth, being too reliant on the consumer," Chris Williamson, chief economist at Markit, told MarketWatch.
Windows 10: Versions for Desktop and mobile
Microsoft is still deliberating hardware versions for its Windows 10. If you are wondering which device Windows 10 would work best on, join the rest of the Windows users. Read full supporting article here.
NIELSEN N.A. PREZ: CONSUMERS DON'T ENGAGE WITH BRANDS - THEY JUST BUY
[Jan. 29, 2015] For the vast majority of brands, consumers are not engaged to or with brands - they're just buying them. That's the blunt message from Nielsen North America President Randall Beard, who claims many marketing executives have "an unrealistic and overly brand-centric view of how important their brands are in people's everyday lives." Commenting in a recent blog post, Beard cited a Ehrenberg-Bass study indicating the average consumer spends 13 seconds purchasing a brand in-store, and an average 19 seconds online.
"The simple truth is this: for most categories, consumers have a small repertoire of brands that are acceptable, and they spend little time thinking about purchase decisions," Bread explains. "Their lives are already full of spouses, kids, events, and other activities, and most people simply don't have the time or energy to 'engage' with brands in any meaningful way. And those that do are a minority. Consumers most often default to making purchase decisions based on simple habit (e.g., previous purchase) or 'instinct.'
"It's a sad fact for most marketers that consumers can do without your brand," Beard continues. "In fact, for most consumers, buying is a largely habit-based, mostly subconscious process that consumers want to be over with as fast as possible. They have more important things to do than think about your brand."
Some New Mobile Technology Trends
As users embrace their smart-phone technology advances expect to see uses in new contexts and environments. Read full supporting article here.
Bunzel Media Report
A publication of Bunzel Media Strategies "The Media Intelligence Acency"
Topics edited Daily.