Consumer Sentiment in U.S. Plunges to a Three-Decade Low

[OhioChick]

Source: Bloomberg

Aug 12, 2011 10:39 AM ET

Confidence among U.S. consumers plunged in August to the lowest level since May 1980, adding to concern that weak employment gains and volatility in the stock market will prompt households to retrench.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment slumped to 54.9 from 63.7 the prior month. The gauge was projected to decline to 62, according to the median forecast in a Bloomberg News survey.

The biggest one-week slump in stocks since 2008 and the threat of default on the nation’s debt may have exacerbated consumers’ concerns as unemployment hovers above 9 percent and companies are hesitant to hire. Rising pessimism poses a risk household spending will cool further, hindering a recovery that Federal Reserve policy makers said this week was already advancing “considerably slower” than projected.

“The mood is very depressed,” said Chris Christopher, an economist at IHS Global Insight Inc. in Lexington, Massachusetts. “Consumers are very fatigued and very uncertain. In the short term, people are going to pull back on spending.”

Read more: http://www.bloomberg.com/news/2011-08-12/u-s-consumer-sentiment-falls-more-than-expected-to-54-9-in-michigan-index.html

[defendandprotect]

1. New Deal was one of the greatest STIMULUS packages ever passed -- economic democracy -!!

Almost, at least -- compared to unregulated capitalism which is merely organized crime!

We seem to have as much as 21% of the public unemployed when we count those working

part time jobs at part time pay vs full time work -- and those who are working jobs

they are overqualified for at reduced salaries!!


And new waves of unemployment continue to hit --

Hartmann said recently that by the end of next year we will have 1 million more out of work!!

[pam4water]

12. +1

[xchrom]

2. Recommend

[tpsbmam]

3. Yep, keep hitting your consumer base and see what happens....

the second Great Depression. I can't believe I voted for many of these people.

[No Elephants]

4. So, 1981, St. Ronnie's first year? Well, he is one of Obama's top 10 U.S. Presidents EVER.

I will never ignore stuff that like again or assume a candidate is saying something solely to pick up votes from right leaning indies or so-called "Reagan Democrats." Never.

From now on, when a candidate throws something like that out there, he or she will own it 100% in my eyes.

[Safetykitten]

5. Nothing to see here. Move along. Everything is fine.

[Thav]

9. You forgot "Continue to spend money."

[Safetykitten]

6. Dupe

[femrap]

7. Again the so-called expert

economists miss the mark by a mile! They must live in a bubble like DC does.

I can make better predictions....hell, my neighbor's dog can do better.

If retail sales are up, credit card usage was up 7% and that may explain it. People had to get the cards out to make ends meet.

[closeupready]

8. I'm sure it's just a blip.

:sarcasm: :eyes:

[DJ13]

10. So thats why the stock markets are in rally mode

:eyes:

[GeorgeGist]

13. Yeah, that must be it.

:sarcasm:
:freak:
:nuke:

[a simple pattern]

11. Some of the citizens are quite pissed off as well.

Maybe it's not entirely a confidence problem.

[ProgressiveEconomist]

14. What people SAY about last month (CS) confflicts with what they actually DID (retail sales

report released an hour and a half before the Consumer Sentiment report this morning).

The Retail sales number was an upside surprise compared to economists' expectations. See http://www.newsday.com/business/wild-market-ends-week-on-high-note-1.3093063

Which do you believe?

I would discount what people SAID about a month in which vocal Republicans repeatedly advocated that Treasury to default on bills coming due for what the government had already bought. Remember, when bills come due at Treasury, the US must now borrow 40 cents of evry dollar that must be paid.