While it appears as though California small businesses are planning to increase their budgets - with a recent Citibank survey finding 67 percent of small companies in the Golden State planning to increase their marketing spend - consumers nationwide appear less interested in spending.
According to a Gallup poll released this week, U.S. consumers spent an average of $65 per day in April, marking a negligible increase from the $64 spent per day in March.
"Consumer spending over the first four months of 2011 is virtually unchanged from the same period last year and in 2009. Nearly two years after economists declared the recession over, spending remains far below the pre-economic-crisis levels of early 2008," wrote Gallup chief economist Dennis Jacobe.
In comparison, consumers spent an average of $86 per day in April of 2008. While rising energy and food prices - not to mention high unemployment - likely contributed to the slow improvement in consumer activity, many analysts have pointed to overall trends as proof of eventual economic recovery.
Accordingly, entrepreneurs looking to incorporate in California may want to consider how improvements in the credit market, bankruptcy rates, hiring and startup activity may influence trends in coming months.
Tags : ca, incorporation news, small business management
Posted: May 9th, 2011