There are many interesting posts from Jason Busch on Spend Matters, but I think this one is essential – if depressing - reading for all of us.
I’ve never heard of the US Consumer Metrics Institute or their Daily Growth Index that is referred to here, but it is an interesting predictor of economic activity, based on tracking real consumer spending through key Internet merchants. Anyway, it shows a deecline in consumer spend that started in January and is continuing. This is a predictor of a decline in the rate of US GDP growth, which may show through when the next figures are released; perhaps the start of a ‘double dip’ recession, or at best a ‘W’ shaped recovery.
Given the start of the public spending squeeze here, and the concern there must be in many public sector workers’ minds, which may lead to cautious spending patterns, I wonder whether we may have similar times ahead here? Anyway, Jason’s checklist of items for procurement organisations to consider if we are heading in that direction is well worth reading.
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