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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (19960)	9/5/1998 4:41:00 AM
From: IQBAL LATIF	Read Replies (3) \| Respond to of 50167

Consumer Confidence (August) Slight Dip Isn't Anything To Worry About August 25, 1998 Are people beginning to have second thoughts about the economic outlook? Maybe. But, one might have thought that the volatility in the equity markets should of had more of an impact on confidence levels since increasing numbers of households own stocks. The recent slide in the stock markets has not caused households to panic. Consumer confidence levels slipped a little in August to 133.1 from 137.2 in July. Given the lofty heights confidence has soared to, the 4.1 point drop should not cause undue alarm. Largely job and income gains drive confidence levels higher. This month 44.4% of survey respondents, a relatively high level, reported that jobs are plentiful. While this does represent a decline from the 46.1% level in July, it compares very favorably to the 37.2% who said that jobs were plentiful a year ago. Only 14.1% of respondents are reporting that jobs are hard to get, compared to 17% a year ago. In 1997, the economy created 3.3 million new jobs, suggesting that consumer perceptions are even more positive today. The Conference Board's most recent report indicates that consumers remain generally upbeat in their assessment of the present situation. The current conditions portion of the index slipped 1.4 points to 171.5 in August from 172.9 the previous month. While fewer folks felt that conditions were bad, a larger number felt that conditions were normal, as opposed to getting better. The expectations portion of the index suggested that consumer felt that conditions six months from now might be a little softer. While households do not expect much change in employment conditions, a smaller proportion report that they expect business activity to improve further. The result was a 5.9 point drop in the expectations component of the index to 107.5 from 113.4 in July. Veronika White, Economist (215) 786-2026