People are talking about failing Social Security after hearing what Greenspan had to say about that issue. Then there are the seniors who are worried about their cost of drugs and the Senior Citizens' express which took off from San Diego to cross the border into Canada. And we have not yet felt the impact of $50 / barrel of oil. They wil start to break in the next 20 days. And this Friday is a crucial day. Jeff, do you know why. I wouldn't be surprised if you didn't since you have kept yourself absorbed in frivolous issues such as the SwiftBoat ad.
Aug 31, 10:31 AM EDT
Consumer Confidence Plummets in August
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By ANNE D'INNOCENZIO
AP Business Writer
NEW YORK (AP) -- Consumer confidence, which had been on the rise since April, declined unexpectedly sharply in August, a private research group said Tuesday.
The Consumer Confidence Index dropped 7.5 points to 98.2 from a revised reading of 105.7 in July, according to a report from The Conference Board. The reading was much lower than the 103.5 that analysts had expected.
"The slowdown in job growth has curbed consumers' confidence," said Lynn Franco, director of The Conference Board's Consumer Research Center, in a statement. "The level of consumer optimism has fallen off and caution has returned. Until the job market and pace of hiring picks up, this cautious attitude will prevail."
Economists closely track consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity.
The report said the Present Situation index fell to 100.7, from 106.4, while the Expectations Index, which measures consumers' outlook over the next six months, dropped to 96.6 from 105.3.
Consumers' assessment of current conditions was less upbeat than last month. Those saying business conditions are "good" declined to 23.2 percent from 25.2 percent. Those claiming conditions are "bad" rose to 20.1 percent from 19.1 percent. Consumers saying jobs are "plentiful" decreased to 18.1 percent from 19.7 percent while those claiming jobs are "hard to get" rose to 25.8 percent from 25.7 percent in July.
Consumers have also reduced expectations for the next six months. Those anticipating conditions to worsen increased to 8.8 percent from 7.1 percent. Those expecting business conditions to improve declined to 20.1 percent from 23.0 percent last month.
The employment outlook for the next six months was also less favorable. Consumers expecting fewer jobs increased to 15.4 percent from 13.5 percent. Those anticipating more jobs to become available fell to 16.2 percent from 19.5 percent. Consumers expecting their incomes to improve in the months ahead rose to 19.3 percent from 18.0 percent last month.
courtesy: hosted.ap.org |
