Will UK economy favour debit cards?

Things look better than they were for the economy which could mean it’s time for a shopping spree!

13:33 19 May 2013

There is more good news regarding the UK economy. Numbers are being assessed and it looks as though losses were not as significant last year as it was originally thought in the construction field.

 

What does this news mean for the economy?

 

It means people may be able to use those debit cards more often than they have been previously. Here’s what the latest news about the economy could mean:

 

• Security—this is the part that everyone wants to see from the economy, a hint of financial security. Shrinking losses portend good things about the economy and future growth.

 

• Pricing—when the economy starts looking a little better there is more growth and consequently more construction which may mean better prices for business customers.

 

• Shopping—better prices for consumers from the point above, should eventually be reflected in the pricing for customers which means it’s time to break out the debit cards and go on a celebratory shopping spree.

 

• Business—when the economy is doing better, more people take a chance and try to open up their own business, which also revitalizes areas of town which had unprofitable vacant spots.

 

• Interest rates—as a result of increased spending with those handy little debit cards, funds start circulating more rapidly which usually means lenders are able to offer better interest rates on loans, or pay more interest on savings.

 

• Employment—another result of the increased shopping trends is that businesses will need to hire more people. That obviously helps reduce the unemployment rate and put even more people into a position to further stimulate the economy once they begin spending as well.

 

The news that the economy is not as poorly off as it was originally thought to be is definitely welcome, and people may have more confidence to justify pulling out their debit cards and funnelling money back into an economy that isn’t so shaky.