End of Tax Season Is Slowly Approaching
As the end of the tax season slowly approaches, reports show a general feeling of optimism, possibly motivated by significantly improved conditions for consumers during past months. This follows a three months period of stagnation, but it is now seen that employment figures are positive with increasing incomes, which bodes well for the American economy.
Positive reports from the Labor Department show that during this tax season, employers greatly improved payrolls in February, topping the best recorded six months job growth since 2006.
Various factors in this tax season are provided by different contributing sources, which included the labor market and the warmer weather and their affect on consumer spending, which was an influence on less energy being purchased to heat homes. Some analysts viewed this as being a positive factor for the consumer in forthcoming tax season periods.
This tax season has seen the healing of the job marketplace, with investor impetus driving up the share prices of retailers. It is supported by the Standard & Poor’s Super-composite Retailing Index, which shows 14% acceleration this year through March 9.
An interesting comparison put forward in some financial reports, related to the world’s second largest economy, which had its largest trade deficit in 22 years! They showed that the economic growth ofChinaduring this tax season, slowed in the first two months of the year, reflecting on exports and domestic demand moderations.
Information from the Commerce Department showed on March 1 that during a three months period in this tax season, after adjustment for inflation, household purchases inAmericarecorded little change. This was partly attributed to expenditure on housing and utilities dropping by $20.7 billion, which at an annual rate over the period, counter-acted a $21.4 billion increase in automobile and parts sales. A caution was given that the outlook for this tax season should take into consideration, that an increased demand for gasoline could raise inflation, while reducing consumer spending.