Consumer confidence down as worries mount on rising fuel, food prices.

[Cali_Democrat]

Also, One in three U.S. consumers has already significantly reduced discretionary spending due to rising gas prices

http://www.denverpost.com/business/ci_17539022

Consumer confidence down as worries mount on rising fuel, food prices
By The Denver Post



One in three U.S. consumers has already significantly reduced discretionary spending due to rising gas prices, according to the monthly RBC Consumer Outlook Index.

With the national average price at about $3.20 per gallon between Feb. 25-28 when the survey was conducted, another one in five said they would reduce spending if gas prices climb to $3.75 per gallon. Four in 10 placed their pain threshold at $4 per gallon or more.

Consumer confidence for March sank for a third straight month, with the RBC Consumer Outlook Index sliding to 42.5, down 2 points from February's 44.5.

The March decline followed smaller decreases the two preceding months, as consumers were further affected by climbing fuel and food prices, instability in the Middle East and budget battles in Washington, D.C.

http://www.denverpost.com/business/ci_17539022

Our fragile economy cannot sustain these high energy prices.

[Andy823]

1. It's all about "GREED"!

Speculators are going to make a bundle off of the mess in the Middle East, even though the Saudi's said they would cover the loses from Libya, and that other reports have come out that there is no reason at all that prices should be this high! When we allow speculators to manipulate prices, and take advantage of anything that happens to increase their profits, we are in trouble! This should have been stopped long, long ago, but it seems like the lobbyists have more control over congress than the people!

[Cali_Democrat]

5. The situation in Norway is also contributing to the rise in crude

I'm surprised this was not bigger news....

http://www.bloomberg.com/news/2011-03-03/norway-drillers-hit-worst-dry-spell-in-decades-as-reserves-wane.html

"All four wells drilled in the Barents and Norwegian seas this year have failed to find oil or gas, adding to two dry wells in the North Sea, the biggest number of failures to start the year since the country’s oil era began in 1966, according to government data."

Norway is a large supplier of oil to European countries.

As for the Saudis, they have been overstating their reserves and their ability to produce oil. This has been going on for years. That's why there was muted reaction when they said they could produce enough oil to make up for the situation in Libya. They can't

[DCBob]

2. Fuel cost is what causing most of this.. which is mostly a result of turmoil in N. Africa and ME..

However, that turmoil may result in some very good changes for countries in that region so a temporary rise in fuel and food costs maybe worth the pain in comparison... imo.

[ProSense]

3. Have you ever heard of the

Conference Board?

Conf Bd: Feb US Consumer Confidence Index Rises To 70.4, 3-Year High

Consumer Confidence Hits 3-Year High

RBC = Royal Bank of Canada. WSJ:

<...>

The RBC consumer outlook survey is conducted on-line via Ipsos’ Public Affairs. The survey was conducted February 25-28.

<...>

There are a lot of orgnizations polling on the economy.

[fasttense]

4. Because the trickle down recovery has only dribbled out a few

yellow streams of minimum wage, no benefits jobs, most people are living off of a whole lot less then they use to.

Until you see labor costs going up, you are not seeing a real recovery.

[Cali_Democrat]

6. Well said. n/t

[FrenchieCat]

7. Since the News "Makers" talk about nothing but the Gas prices

day in, day out.....of course, this would be the result.

It's one thing to have folks understand that prices on fuel etc...
are going up. However, it is quite another to have the news act as a broken record,
unless the agenda is to inject some of that good'ol pessimistic malaise required
to continue keeping the economy down....half of which is not based on
anything but the way folks feel about where we are going.

[sad sally]

9. It doesn't take news readers to remind people about gas prices,

all you have to do is pull up to a pump and hope you have enough cash to pay, since you just paid the electic bill (which went up), and bought a few groceries (and surprise! they went up too).

If you happen to live someplace where there is no public transportation, and you're lucky enough to have a part-time job that pays minimum wages that you need to drive to, and you can't really afford to buy a hybrid or electric vehicle, you either pay the high gas price or quit. Yeah, the economy is doing just great for some - bankers, stock traders, movie stars, basketball players, lobbyists - but it's a bit condescending to imply permission about the economy isn't valid for some of us.

[Name removed]

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