Gallup: Consumer Confidence lowest level of the year in May

[West Coast Democrat]

http://www.gallup.com/content/?ci=11611

GALLUP NEWS SERVICE

PRINCETON, NJ -- Last Friday's job report suggests that new hiring is finally beginning to happen in the U.S. economy, with the addition of 600,000 new jobs over the past two months. Add in the fact that the economy continued to expand at a 4% annual rate during the first quarter, and one might reasonably assume that consumers have good cause to be increasingly optimistic about the economic outlook.

New Gallup Poll economic data, however, show just the opposite. In early May, more consumers rate current economic conditions as "poor" than at any time this year. Even more surprisingly, half the public thinks the economy is "getting worse" as opposed to "getting better" -- nearly twice the number who held that view in January. Combined, these two key findings suggest that consumer confidence is now at its lowest point of the year.

Why is consumer confidence declining just when the economic expansion finally seems to be building some positive momentum? Part of the explanation may involve growing consumer concerns about increasing prices and higher interest rates. Another part lies in the way higher-income consumers remain much more optimistic about the economy and its future prospects than do their middle- and lower-income counterparts.

Inflation Expectations Increase in May

Two in three Americans tell Gallup they expect inflation to increase over the next six months. This is up eight percentage points from April and is the highest percentage of the public expecting prices to go up since Gallup began measuring inflation expectations in
October 2001.


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[BillZBubb]

1. Maybe people are finally catching on?

When they see the inflation in basics going through the roof, that actually registers apparently.

Sadly, most Americans weren't too concerned with the jobless rate, since they had jobs. But everyone buys gas and milk.

The irony may be that Shrub and Greenspin have temporarily boosted growth with binge spending on borrowed money and low interest rates only to be done in by inflation in consumer staples!

[West Coast Democrat]

2. And the Iraq occupation was supposed to bring down gas prices...

this was the wingnut expectation. Just one more reason most people think going to war was just not worth it.

[West Coast Democrat]

3. bump