U.S. consumer confidence in early April 2008 plunged to its lowest level in 26 years, suggesting American adults are becoming more concerned about the near-term health of the U.S. economy as it slides into its first recession in six years. The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence fell to 63.2 in April 2008 from 69.5 in March 2008. It was the index's lowest reading since it fell to 62.0 in March 1982.
Economists surveyed by Bloomberg News had predicted that the April 2008 index would fall to 69.
Meanwhile, the index of consumer expectations for six months from now, which more closely projects the direction of consumer spending, fell to 53.4 in April 2008 from 60.1 in March 2008. It was the expectations index's lowest reading since November 1990, Reuters reported Friday.
'A really bad number'
Economist Peter Dawson, who did not participate in the survey, told BloggingStocks Friday there's no way to sugarcoat the latest consumer sentiment reading. "It's a really bad number. Just awful. Consumers are expressing serious concern about high gasoline, oil and food prices, the threat of job layoffs, and the general the state of the economy," Dawson said. "Given that consumer spending a represents about two-thirds of economic activity, it doesn't bode well for the economic recovery timetable."
With the above in mind, Dawson said those who expect a U.S. economic recovery to start as early as Q3 2008 "are at the extremely optimistic end of the recovery spectrum."
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Reader Comments (Page 1 of 1)
4-11-2008 @ 12:54PM
Karl said...
Well, Rockefeller and JP Morgan still run things and HW Bush's "New World Order", NAFTA, GAT, WTO, etc. all came from their creative little minds. So what is happening now? The breaking of America down, along with unions. the middle class, and the dollar. With a fiscal gap of over 70 trillion, interest on the evergrowing debt one of the three largest items in the national budget, the debt skyrocketing, trade deficits, ever increasing defense spending, and an economy based on the military and Walmart something has got to give soon.
Either a war against the Chinese who we will never be able to pay back, or a collapse of the US dollar and economy and a slide into a police state and a broken nation. Even the corrupt Bush family I believe has sentimental attachment to the USA so I believe it will be war. Anyone who thinks otherwise please tell me how we are going to pay them off. The alternative? We've been so hoodwinked over the last decades by these gangsters and endless defense spending I just can't see them throwing in the towell and letting this nation fall without some kind of fight. They've made their money, now it time to stiff the other guys because we can't pay them back.
Tony Soprano
4-11-2008 @ 1:44PM
william lindblad said...
Paying the Chinese back? The Yuan value is controlled, therefore it's true value is not known. As you say, we are heavy in Chinese debt obligations, but we are also their biggest importer. No war, as it would not benefit either country. They are in this just as deep as we are. The Chinese do not have state or company sponsored retirement - they invest private. Think that over as their banks and investment houses have to report at some point in the future. Tell me that a lot of it was not in our sub-prime mess. We have bad consumer sentiment and they are next.
I agree on the third quarter remark as anyone who feels it will improve would have to be an extreme optimist.
One thing that I notice from the trench level view is that people are buying veggie plants - lots of veggie plants. Welcome to the new era victory garden - you gotta eat.
If this is an indication of how good things are??
4-11-2008 @ 4:07PM
prousa217 said...
Tony Soprano:
It will take time.. but this is how we do it. We do not have to pay back anything to anyone. We just need time to examine ourselves and ask, what could we do as an American to make this country stronger than ever, and be independent, self sufficient? First, we have to learn how to sacrafice. We need to learn how to reduce consumptions on gas and oil. We need to use our brains to develope the type of technologies that will replace oil and gas once for all...Then you watch our economy grow.. But we must learn to sacrafice. We can not live beyond our means like the former Americans we used to know. We need to educate our children. We need to take care our own parents when they are getting old. We need to bring back our family foundation and structure. Finally, we need a government who is not corrupt, wasteful and incompetent. We need Americans to be on top again by doing the basic things like we used to do.. We become complacent by being An American for too long. But no longer we are in second place today!! So, let's hear it, what do you say can you do it!?? Yes you can!! Say it- You are mad as hell!!