(see Factors Affecting Consumption Spending)

DIGSE - Influences on Consumption §

• Disposible Income (most significant)
• Interest Rate
• Government Policy
• Stock of Wealth
• Expectations (Consumer / Business)

SPICE - Influences on Consumption §

• Stock of wealth
• Policies of Government
• Income (Disposible) (most significant)
• Cost of Credit (Interest Rate)
• Expectations

Expectations has the greatest impact on discretionary items, such as holidays, computers, televisions, and motor vehicles. people will still buy essentials like food and transport.

In normal words;

• Wealth
• Government Policy
• Disposable Income
• Interest Rates (how easy it is to get a loan)
• Economic Expectations