Consumer borrowing should be a sign for businesses

Consumers have cut back on spending in recent years - a defensive measure that has led to economic stagnation but has also contributed to higher personal savings, lower credit delinquency rates and lower debt.

Consumers have cut back on spending in recent years - a defensive measure that has led to economic stagnation but has also contributed to higher personal savings, lower credit delinquency rates and lower debt.

However, a consumer sector that is willing to borrow is the first sign of improved sentiment and spending activity. A report released this month by the Federal Reserve Bank of New York suggests this trend may be starting to unfold.

According to Fox Business, credit card limits increased for the second straight quarter, growing by 2 percent - $60 billion - in that time. Meanwhile, Fox added, open credit card accounts expanded to 389 million, up 10 million from the first quarter, while credit card inquiries also showed signs of improvement. Analysts interpret this as an early indication of renewed interest in acquiring credit.

"[Home] foreclosures are also down 22.8 percent from the first quarter," Kate Rogers wrote for the source, "as were bankruptcies, which fell 23.8 percent from the second quarter of 2010."

Retailers and consumer-focused businesses may want to amp up their market research initiatives to further comprehend the shift in sentiment. Marketing strategies such as mystery shopping can be a good way to cull critical service demands.