EDUCATION INDUSTRY
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The high level of interest rates has finally started acting as a deterrent to taking on debt amongst financially stressed consumers. Fortunately, the household debt to disposable income ratio has edged up only marginally, mainly due to recent negative growth in disposable income. The ratio is nonetheless no way near the highs witnessed a decade ago.
Whereas much of the initial decline in growth of consumer spending was evenly spread across all segments of consumption, recent data suggest that the demand for discretionary goods is now falling off considerably faster than other areas of consumer spending. Growth in passenger vehicle sales, for example, is now substantially negative, having been positive earlier in the year.