2017 Deemed a Year of Growth for Consumer Spending

Economic trends suggest that 2017 will be a growth year for consumer spending, according to the “Economic Indicators Report” released in May by ETA and The Strawhecker Group (TSG). Retail sales (minus gas) are predicted to increase 4.1 percent in 2017, which would mark the best growth in three years.

The report notes that consumer spending is a “key ingredient” in the economy, comprising between 50 and 75 percent of gross domestic product (GDP). Increased use of electronic payments boosts consumption and GDP: “Many economists have suggested that a 1 percent increase in usage of electronic payments produces, on average, an annual increase of approximately $100 billion in the consumption of goods and services,” the report states.

Other significant findings from the “Economic Indicators Report” include the following:

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Increased use of electronic payments makes the economy more efficient. Increased usage reduces transaction costs, improves the flow of goods, and assists consumers by making purchasing more convenient.
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Electronic payment usage benefits governments, which can collect more tax revenue due to more transparent transactions that can be taxed more readily.
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Encouraging the growth of electronic payments provides consumers and merchants a choice and increases competition. Policy measures that promote electronic payment solutions are found to improve the economic environment.