Consumer confidence plunges unexpectedly

[gasperc]

snapshot below, read more at the link. dampens yesterday's positive reports about the future of the economy but parallels the downturn in housing.

http://news.yahoo.com/s/ap/20060228/ap_on_bi_ge/consumer_confidence


<snip>
In a statement, Lynn Franco, director of The Conference Board Consumer Research Center, said "consumers are growing increasingly concerned about the short-term health of the economy and, in turn, about job prospects." But consumers' assessment of present conditions is holding steady at a four-and-a-half year high, suggesting that the start of 2006 will be better than the end of 2005, Franco said.

The component of the consumer confidence index that assesses consumers' views of current economic conditions rose to 129.3 from 128.8. But another component that measures consumers' outlook over the next six months, the Expectations Index, fell to 83.3 from 92.1 in January.

Excluding the two months following Hurricane Katrina, the Expectations Index in February was at its lowest level since March 2003, when it was 61.4. Franco warned that if expectations continue to lose ground, the outlook for the remainder of the year could deteriorate.

The downbeat report cast a cloud over spring retail sales and tempered the outlook for the economy. Economists closely track consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity. Still, the report wasn't seen as alarming since it covers just one month.
<snip>

[m_welby]

1. unexpectedly ? n/t

[hatrack]

2. Do I smell the scorched tailfeathers of surprised economists?

I b'lieve I do . . .

[AnneD]

16. 'Surprised' economist...

you forgot to add this ':eyes: '

[Viva_La_Revolution]

3. Those Bubble People need to get out more...

We've been discussing this for months. The Christmas shopping held it off for a little while, as you can tell by the immediate drop in January.

[rodeodance]

4. says what i have been feeling for over a year (at least)

The downbeat report cast a cloud over spring retail sales and tempered the outlook for the economy. Economists closely track consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity. Still, the report wasn't seen as alarming since it covers just one month.
<snip>

[MindPilot]

5. Certainly wasn't unexpected...a personal example

I just dropped close to a thousand bucks for a valve job on a car that isn't worth much more than that. No way am I going to entertain the idea of a new car, or even going into debt for a used one. I need several large purchase items, new stove, car, fridge, carpet, but I'm not spending a dime beyond what is necessary to hold out for at least the next three years.

[cliss]

11. Same here.

We don't believe in wasteful spending, and we watch every penny. Even though we can go out and buy new appliances, we don't. It's much better to use them until they are worn out.

Since we all live in Bush World, it's better to set aside money because who knows what he'll do next?

[gasperc]

6. kick

[peacefreak]

7. Consumer Confidence?

When over half of my weekly income goes to rent & buying a pair of jeans constitutes a major purchase, yeah, I'd say I have little confidence in this economy.

[liberal N proud]

8. What is really means is confidence fell so far they could not prop it up

any longer.
When the bottom falls out completely, there is not much you can do.

[no_hypocrisy]

9. It's hard to buy a lot of stuff when you're not certain about:

1. Keeping your job
2. Having credit issues (e.g., borrowed on home equity, mortgage too big for your purse)
3. Having any prayer of bankruptcy
4. Paying double-digit increases in your property taxes thanks to service cuts in federal budget due to tax cuts to the wealthiest 1% of Americans.

Any or all of these financial challenges might reduce your urge to go out and buy those big ticket items that superficially keeps this economy afloat.

[anotherdrew]

10. this whole "consumer confidence" crap is a confidence game

maybe those damn consumers have been reading the news, other than the corporate robot monkey news. (remember the little monkey toys that smash a pair of cymbals together, 'cheerleading' if you will)

The Economic Reporting Review is CEPR Co-Director Dean Baker's weekly analysis of business and economics articles in the New York Times and the Washington Post.
check this site: http://www.cepr.net/pages/err_page.htm

[Lochloosa]

12. Let's see....

My electric bill has increased 100 bucks a month. Gas is a buck more than last year. My business is struggling..

What else?

Deficit is raging out of control. Hummm....

And this is unexpected? :mad:

[gasperc]

13. like when you get whacked in the head with a baseball bat

why is my head bleeding? why does my head hurt so much?

[adigal]

20. Please - stop being such a sissy Mary whiny baby

All of the Freepers on free republic said yesterday that the economy is about to "roar," and is going gangbusters. You must just be in the wrong business, and maybe you can be real American and do without electricity and oil and electric for your house. If you were a real American who loved Bush the way you should, you would see that. You must hate America AND the economy.
(/snark off)

[land of the free]

21. there are all of the layoffs at Ford and other manufacturers

as well.

Nice to see more people are waking up & smelling the stench of the Bush administration.

[Lindsay]

14. They said the same damn thing last month.

Long past time these folks got clues. Or stopped lying.

[BiggJawn]

15. Here it comes. $250,000 of Ditech-dot-Com debt secured with $60,000...

...worth of property....

Glad my landlord owns my hovel free and clear.

Who's the FOOL now, eh?

"Lost ANOTHER Home to Ditech-Dot-Com!"

[salin]

17. drop in consumer confidence, or perhaps

realities of debt coming to awareness due to change in credit card minimum payments?

[goforit]

18. Here it goes folks.....spiralling downward!

[adigal]

19. I am very confident

I am confident that I will spend every last dollar my husband and I make this month of housing, food, oil costs (double of last year,) and gasoline.

I am not confident that we can continue on this way.