Friday, July 15, 2011

Consumer Confidence Lowest in Two Years

Consumer confidence is the lowest since March 2009. I am not surprised. I am assuming consumer confidence is low because 80% wants Obama to raise taxes (sarcasm). In reference to Obama's recent statement, he believes majority of Americans want taxes to increase. Consumer confidence leads to consumer spending. If people do not feel confident in the economic outlook, it is impossible to escape of Obama's fantasy.

(CNBC) U.S. consumer sentiment deteriorated in early July to the lowest level since March 2009 on increasing pessimism over falling income and rising unemployment, a survey released Friday showed.

Confidence in government economic policies also curdled, the Thomson Reuters/University of Michigan survey showed.

U.S. lawmakers are wrangling over a budget deal that would allow the government to raise the debt ceiling—needed so the United States can fund its obligations next month.

The preliminary reading for the consumer sentiment index dropped to 63.8 in July from 71.5 the month before, falling far short of expectations of an increase to 72.5, according to a Reuters poll of economists.

Twice as many consumers reported hearing about new job losses compared with job gains, while half of all consumers said the economy had recently worsened. Last week, data showed the economy added a scant 18,000 jobs in June.