Higher consumer confidence could mean more sales for small businesses
Consumer confidence has long been an important factor for businesses, and the current upswing in this metric indicates businesses may find an increased need for their cash and check scanners in the coming weeks and months. Higher consumer confidence levels could bring a welcome jump in sales and help business owners get off to a good start this summer.
More confidence seen among shoppers
The Conference Board Consumer Confidence Index shot up to 76.2 in May, up substantially from the 69.0 reading seen in April. This is the highest reading the index has experienced in several years.
"Consumer Confidence posted another gain this month and is now at a five-year high," said Lynn Franco, director of economic indicators at the Conference Board. "Consumers' assessment of current business and labor market conditions was more positive and they were considerably more upbeat about future economic and job prospects. Back-to-back monthly gains suggest that consumer confidence is on the mend and may be regaining the traction it lost due to the fiscal cliff, payroll tax hike and sequester."
Outlooks were mostly positive on all fronts. The number of respondents who claimed business conditions are good jumped from 17.5 percent to 18.8 percent, while those who expect this growth to continue in the next six months increased to 19.2 percent, compared to the 17.2 percent seen in April. More of those polled also anticipate companies will need to hire in the near future - 16.8 percent thought businesses would need to add jobs in the next few months, while only 14.3 percent thought the same last month.
Sales jump could benefit businesses
With more customers confident about the state of the economy and job market, more may be willing to increase their spending and increase their monthly budgets. This comes as good news to business owners, who have struggled to increase sales since the economic downturn hit.
As consumer sentiment continues to rise, these organizations will need to ensure they have the technology necessary to cope with a jump in transactions. Having the right cash counting machine and remote deposit capture technology can help business owners efficiently manage the day's sales and spend more time on the floor assisting customers. This can continue to help them grow their firm and establish a reputation as a local business leader.