NYCS Suggests Consumer Spending Outpaces GDP Growth

    NEW YORK, NY, April 25, 2014 /24-7PressRelease/ -- With preliminary figures from Q1 sales suggesting their direct marketing campaigns have outperformed competitors by close to 5%.

The New York City-based outsourced sales and marketing firm cites eMarketer's reports that total US retail sales amounted to $4.53 trillion in 2013. The report was compiled from 47 research firms and government institutions, and reflects growth from ecommerce and brick-and-mortar retail sales. Retail sales grew by 4.2% in 2013, while GDP as a whole grew by 2.6% over 2013. "The growth of retail sales is significant, because it reflects consumer spending as a whole. As an outsourced firm working predominantly in the business-to-consumer arena, the increase in consumer spending has resulted in significant growth for us over Q4 of 2013 and Q1 of 2014," says Colin Moore, managing director of NYCS.

The growth of consumer spending is an important indicator of economic recovery because it amounts to almost 70% of economic activity, according to the Economist Intelligence Unit. eMarketer reports that retail represented over a quarter (27 %) of nominal US GDP in 2013, an increase of 0.3% from 2012. "The evidence suggests that consumer spending does to large extent define economic growth, so it is unsurprising that retail sales outpaced GDP last year," says NYCS managing director Colin Moore.

NYCS believes that the upturn in retail sales is an indication of an increase in consumer confidence, something which the outsourced firm attests is vital to maintaining GDP growth in 2014. In December 2013, the Consumer Confidence Index increased by 4 points from November to stand at 78.1; the Index grew again this March to 82.3. "Consumer confidence is incredibly important to maintain if we want to see consistent, long-term growth in this country," says Colin Moore, managing director of NYCS. "If consumers are confident about the economy, they are more likely to spend. This increases revenues for US businesses, which in turn leads to more job creation and therefore more disposable income for consumers to spend. It becomes a cycle of economic growth - but the danger is that if consumer confidence is damaged, people will be less inclined to spend, which has a knock-on effect for US businesses of all sizes."

About NYCS: http://www.newyorkclientsolutions.com/about-us/

NYCS predicts that a steady growth in consumer confidence should bring about a strong growth year for the US economy. The Economist Intelligence Unit tentatively predicts whole-year GDP growth to be in the region of 3% in 2014. NYCS predicts that their own Q2 sales will grow by a further 8% over Q2, as the firm further expands their direct marketing campaigns.

NYCS is New York City's premier outsourced direct marketing and sales company, working with clients in the telecoms, non-profit, energy, and finance industries.

Sources:

http://www.emarketer.com/Article/Total-US-Retail-Sales-Top-3645-Trillion-2013-Outpace-GDP-Growth/1010756
http://www.forbes.com/sites/samanthasharf/2014/03/27/u-s-gdp-grew-2-6-in-the-fourth-quarter-2013-up-from-last-estimate/
http://www.conference-board.org/press/pressdetail.cfm?pressid=5047
https://www.conference-board.org/data/consumerconfidence.cfm

New York Client Solutions is an outsourcing sales and marketing solutions for businesses that are looking to boost their weekly sales targets and build their customer base. As a company, they provide their clients with cost effective, low risk alternatives to more traditional marketing strategies.

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