What Does Food Have to do With the Economy?

One of the more surprising realizations to come from the financial crisis is that the economy is linked to baked beans sales. It sounds like a joke perhaps, but analysts have been using this indicator to predicate the end of the recession based on consumer spending when it comes to foodstuffs.

The United Kingdom is well known for its fondness of budget foods from corned beef to baked beans and other budget lines. Recently, economists looked at sales figures for these budget products in a bid to see just how they relate to the economy.

Initially, it would seem that sales of budget food stuffs have risen significantly over the past three months when compared to the same period last year. At the same time, more luxury items such as Olive oil and organic foods have fell.

These figures don’t only show a fondness of baked beans, but an increase in contentious spending and tighter budgeting ever present in homes. It is clear for all to see that when times are tough, the British people budget heavily with food, as since around November 2008 to May 2009 sales of baked beans consistently grew, alongside that of other budget foodstuffs.

In the past few months of June and July there has been a slowing in growth of sales in these budget food products, which in itself is a sign that people are finally starting to be less conservative with their spending.

This is could be seen by many as a sign that the recession is easing, well – according to the eating habits of the United Kingdom that is. However given past indicators the government has relied on, this one may be the most accurate yet.

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