Current economic conditions are now listed as the lowest since 1983. The problem is that this is a survey and we will probably want to wait at least a month or two to make sure that they just didn't get a bad draw here.
The next question is: why there was this large sudden drop? What happened in February? It isn't clear to me what that new news would be. Possibly readers of this blog have some idea.
The next question is: why there was this large sudden drop? What happened in February? It isn't clear to me what that new news would be. Possibly readers of this blog have some idea.
A monthly poll showed consumers' confidence took a surprisingly sharp fall in February amid rising job worries. The decline ends three straight months of improvement and raises concerns about the economic recovery.
The Conference Board said Tuesday its Consumer Confidence Index fell almost 11 points to 46 in February, down from a revised 56.5 in January. Analysts were expecting only a slight decrease to 55.
The increasing pessimism is a big blow to hopes that consumer spending will power an economic recovery. Economists watch the confidence numbers closely because consumer spending accounts for about 70 percent of U.S. economic activity.
The February reading is a long way from what's considered healthy: A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.
The news sent stocks lower, overshadowing retailer reports that showed stronger holiday profits. The Dow Jones industrial average falling 74.29 points to 10,309.09 by midmorning.
One gauge, measuring consumers' assessment of current conditions, dropped to 19.4 from 25.2, the lowest level since 1983. The other barometer, which measures their outlook over the next six months and had been rising since October 2009, fell to 63.8 from 77.3.
The overall Consumer Confidence Index hit a historic low of 25.3 in February 2009 but then enjoyed a three-month climb to 54.8 in May, fueled by signs the economy might be stabilizing. Since then, it has been mired in a narrow range, dropping as low as 47, as rising unemployment took a toll, before climbing again for a three-month stretch.
February's reading is well below the 61.4 figure in September 2008, when the financial crisis intensified with the collapse of Lehman Brothers. The index has had an average reading of 95.6 since the Conference Board starting tracking the figures in 1967. . . .
Related Posts
Consumer confidence and expectations remain near record lowsPeople's "present situation" has never really recovered at all. The graph was available here.
Rasmussen: "60% Say U.S. Economy in Recession"While the media's positive spin on things undoubtedly has a major impact, on February 27, 2012 60% of Americans still t- Obama's nondecision is really a decision on the Canada to Texas oil pipelineObama is increasing the costs of the pipeline and may kill it simply by delaying it. In addition, everyone knows that
"Only 6 Percent of Americans Say Health Care is the Top U.S. Problem"Remember this is before Obamacare actually goes into effect. A new Gallup poll finds that only 6% of Americans th- Jobs picture stalling in 10 battleground statesFrom the WSJ: The data confirm job growth has sputtered in these states since the winter's brisk pace of job growth. .
- Weird poll: almost half of women would prefer having larger breasts than higher intelligenceFrom the UK Daily Mail:They say it’s what’s inside that counts – but most young women in this country would beg to diff
"Consumer Confidence Falls Sharply"
4/
5
Oleh
abudzar
