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FINANCIAL TERMS
Consumer Demand
Description
Consumer demand means how much goods and services consumers want to buy.
In simple terms, consumer demand shows how willing and able people are to spend money.
When demand is strong, businesses may sell more, hire more, and invest more. When demand weakens, companies may reduce production or become more cautious.
For example, if more people want to buy cars, clothes, and restaurant meals, consumer demand is rising.