Consumer confidence sank to a 5 year low in March as tight credit markets, rising prices at the pump, in the grocery stores and for heating fuel as well as job loss and worsening job prospects deepened worries about the economy falling into a recession.
Lynn Franco, director of the Conference Board’s research center, said the latest reading was the lowest since the index hit 61.4 in March 2003, just ahead of the
Lynn Franco said, “Consumers’ outlook for business conditions, the job market and their income prospects is quite pessimistic and suggests further weakening may be on the horizon.”
This will definitely affect every one of our businesses. Hopefully, you have been aware of the credit crunch and the crisis of our economy and have taken steps to protect yourself and your business as this crisis gets worse. One thing you can do since consumer confidence is down is do something with your marketing or your services to help boost consumers’ confidence in your business. This not only affects your customers, it will affect your employee’s so be sure to reward them for jobs well done and keep morale up.
Remember that right now is not the time to extend customer credit, be sure to do a thorough check on anyone you might let walk out your front door without paying you on the spot.
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