According to an October 25, 2011 AP article, as of late September, Americans’ confidence in the economy is at its lowest since 2009, when we were in the midst of a deep recession. See the full article at:
http://news.yahoo.com/consumer-confidence-lowest-since-recession-160735732.html Some highlights (lowlights?):
- Consumer confidence fell in October to the lowest since March 2009, reflecting the big hit that the stock market took this summer and frustration with an economic recovery that doesn't really feel like one.
- The Conference Board, a private research group, said its index of consumer sentiment came in at 39.8, down about six points from September and seven shy of what economists were expecting. The reading is still well above where the index stood two and a half years ago, at 26.9. But it's not even within shouting distance of 90, what it takes to signal that the economy is on solid footing.
- Economists watch consumer confidence closely because consumer spending accounts for about 70 percent of U.S. economic activity. The index measures how shoppers feel about business conditions, the job market and the next six months…."If people think their income is declining, they're not going to be inclined to spend," said Jacob Oubina, an economist at RBC Capital Markets.
- Mark Vitner, senior U.S. economist at Wells Fargo, said he will probably trim his forecast for holiday revenue in the retail industry based on Tuesday's figure. Vitner said the persistent gloomy headlines about the economy may lead people to say they feel worse about things than their own situations would suggest. They might have a good job and stable finances, for example, but still report feeling sour. But the decline in confidence is "too significant to get away from it," he said. "Consumers are losing hope that strong growth is around the corner."
- Consumer confidence had been recovering fitfully since hitting an all-time low of 25.3 in February 2009, but has taken a turn for the worse as Americans worry about high unemployment, rising prices for food and clothes and an overall weak economy. The index is based on a survey conducted Oct. 1-13 of about 500 randomly selected people nationwide.
