How Businesses Can Take Advantage of Consumer Spending From the Loans And Deposits Data — Breakdown For Every US State
Demand deposits represent transactional accounts. Both businesses and consumer use checking accounts to transfer money. They carry lower interest rates than savings accounts & CDs. Movement of money & growth in the demand deposit account can signal business expansion and jobs growth. An Increase in demand deposit means a newer business operation or hiring or money from matured time deposits or sales of other asset classes like Stock, Bonds, and Real Estate.
Non Transactional Accounts
Growth of these accounts signifies people & business are saving more. Depending on weekly movements we can predict the nature of the transaction whether it’s from a business or the consumer. These accounts offer more interest. Making a business decision based on non-transactional accounts variation yields better result on demand estimation. When the savings account is increasing then it signifies business growth and expansion of employment opportunity as well. Small-time deposits & maturity data show when the consumer capital will be available. Businesses can make production decision based on the volume of small-time deposits maturing in the future.
Time Deposits → Maturity Period
Time deposits have maturity period to denote when in the future this money would be available. It can be used as a signal for making a business decision on production and sales. Availability of capital signifies there will be buyers in the future so the real question is when in the future. Depending on the merits of the product and the maturity period of the deposits were estimate business sales in the near future. When there is capital availability businesses can be certain that there will be consumer spending in the future vs a scenario where consumer take loans to buy products.
Time deposits with smaller maturity time usually represent consumers with needs in the near future and they anticipate certain expenditure or want an option to utilize the money for some other purpose like investing or personal events. Short term deposits within a year represent consumers are waiting for the right time to utilize the capital. On the other way around business take decision on production, supply chain and sales based on future demand for the product. A good way to know whether the consumer will buy in the future is based on capital available with the consumer. Short Time deposits give certainty that the capital will be available with the consumer in the near term. Short time deposit does show a buildup of the capital that businesses can utilize. The same way many business also use savings deposits or time deposit to store the excess cash flow. Small-time deposit again shows businesses want liquidity if there is a buying opportunity in the marketplace.
Savings Deposits → Size & Volume Of Accounts For Each State
Saving deposits represent accounts that have transaction limitation. Businesses move the excess cashflow into savings deposits as the Interest rate increases with the increase in deposits on certain money market savings account. Increase in volume of savings can signify business growth and jobs growth. Movement of money in the savings account based on time can signify the consumer spending or business spending.
Money Market deposits yield higher interest rates and also offer varying APY. It also signifies that these deposits are available for near term use cases but the consumer/business doesn’t have any immediate use for it.
