Consumers, Small-Business Owners Souring on This Economy

[marmar]

Consumers, Small-Business Owners Souring on This Economy
by Wolf Richter • April 27, 2016


[font color="blue"]“Flashing a recession signal.”[/font]

Consumer optimism about the economy is waning, and small-business-owner sentiment is giving off recession vibes. That’s how different surveys are now mucking up the rosy scenario.

Gallup’s Economic Confidence Index, released today, added another dimension. It dropped four points in the week ending April 24, to -16, the lowest since August 2015, and down from positive territory in January 2015.

It left Gallup groping for answers:

Pessimism has increased despite a strong stock market in recent weeks and a persistent low unemployment rate. However, there have been reports of weak retail sales and expectations of low first quarter economic growth. Gas prices have also started to rise, although they remain well below where they were for most of the past decade.

The report also blamed the rhetoric emanating from the presidential primary. Candidates, still unconstraint by the dictum affecting US Presidents to always hype the economy, have unabashedly pointed at some ugly spots in the rosy scenario and have suggested “how they would fix the US economy if elected.” This, Gallup says, rattled some nerves.

In January 2015, the index was at +5. It wasn’t exactly wallowing in exuberance, given its theoretical range of +100 to -100 (it hit -65 during the Financial Crisis). But that was the high point. And it has been zigzagging south ever since.

Consumers don’t live in the Wall-Street economy. They struggle with their daily challenges in the real economy. For them, it’s tough out there. Study after study confirms that about half of them, even those considered middle class, are living from paycheck to paycheck and can’t come up with $500 for emergency purchases. ............(more)

http://wolfstreet.com/2016/04/27/consumers-souring-on-economy-small-business-sentiment-recession-signal/

[dixiegrrrrl]

1. "economy soured on consumers" is more appropriate.

Love the way they write the article as if "consumers" are doing a voluntary pullback instead of a forced one for lack of income.

[Kip Humphrey]

2. Blame the candidates??? Asshole elites will never accept that the Great Recession never ended

for most of us. Why?
For them, everything is rosy and has been for quite some time
Having skewed economic measures with their own feel good numbers, the elites have come to believe their own propaganda
They don't exist outside their bubble of privilege so they don't see it