Friday, August 12, 2011

Consumer Confidence Crashes, Lowest Since Jimmy Carter

Base on consumer confidence survey, today's generation is witnessing the worst economic time as comparable as former President Jimmy Carter years in the White House. As expected, a president with no executive experience can not run a country. The game is over. American fulfilled a dream and put a black man in office. Now, let's get serious and put a person with executive experience in the White House.

(Reuters) - U.S. consumer sentiment worsened sharply in early August, falling to the lowest level in more than three decades, after retail sales posted the biggest gain in four months in July.

High unemployment, stagnant wages, gridlock in Congress, and a stockmarket slump all contributed to a consumer mood that was as grim as when Jimmy Carter was President during the recession of 1980 and interest rates were more than 20 percent.

Despite the gloom U.S. consumers kept spending in recent weeks with retail sales up in July by the most in four months.

"People's spending doesn't always correspond with their mood," said Stephen Stanley, chief economist at Pierpont Securities in Stamford, Connecticut. "I doubt things are as weak as the sentiment readings suggest, but no doubt people will be cautious in August."

The preliminary August reading on the consumer sentiment index fell to 54.9 in early August, down from 63.7 in July, and the index has fallen for three straight months in the Thomson Reuters/University of Michigan survey.

Unemployment at 9.1 percent of the workforce, low wage rises, and the protracted debate in Congress over raising the U.S. government debt ceiling spooked consumers, survey director Richard Curtin said in a statement.

Bad economic times were expected by 75 percent of all consumers in early August, just below the all-time peak of 82 percent in 1980. Buying plans for household durables and vehicles declined in early August, falling back to their recession level lows.