Consumers Lose Confidence In January

[Purveyor]

Source: Associated Press

NEW YORK -- Consumer confidence fell sharply in January on worries over deteriorating business conditions and a weakening job market, a business research group said today.

The New York-based Conference Board said that its Consumer Confidence Index dropped to 87.9 in January from a revised 90.6 in December. That put it back to about where it was in November, when it registered 87.8.

The January reading was just a tad below the 88 expected by Wall Street analysts, according to Thomson/IFR.

The index, which measures how consumers feel now about the economy, has been weakening since July, suggesting that wary consumers could retrench financially. Any cut back on consumer spending could weaken the economy further.

January's data was collected before the Federal Reserve on Jan. 22 cut its short-term interest rate target three-quarters of a percentage point to 3.5 percent to boost the economy.



Read more: http://www.detnews.com/apps/pbcs.dll/article?AID=/20080129/BIZ/801290418/1001

[ixion]

1. "Any cut back on consumer spending could weaken the economy further"

well, maybe big business should have thought of that before they started gouging consumers several years back.

Oh yeah, I forgot...big business doesn't think. It just marches forward leaving scorched earth in its wake.

[flashl]

2. I love it ...

"Any cut back on consumer spending could weaken the economy further."

Many U.S. 'consumers' hovering around in the annual salary of $43318 range, without any effort, are darn near in the position of negative automatic withdrawals each month just paying for basic necessities.

There is no choice or room to 'cutback'.

[bdamomma]

3. hmmm..... those retailers will learn the hard way.

maybe those retailers should read this article.

enlighten them a little.

http://www.informationclearinghouse.info/article19188.htm


just a snip:

This massive Keynesian stimulus produced pitiful economic results. Median real income has declined. The labor force participation rate has declined. Job growth has been pathetic, with 28% of the new jobs being in the government sector. All the new private sector jobs are accounted for by private education and health care bureaucracies, bars and restaurants. Three and a quarter million manufacturing jobs and a half million supervisory jobs were lost. The number of manufacturing jobs has fallen to the level of 65 years ago.