The Quiet Effect of the Goo- "Americans less optimistic about the future"

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Oil, expectations rattle consumers

October 29, 2004: 10:17 AM EDT

http://money.cnn.com/2004/10/29/news/economy/consumer_sentiment.reut/index.htm

NEW YORK (Reuters) - U.S. consumer sentiment deteriorated in October as rising energy costs and persistent job worries made Americans less optimistic about the future, according to a survey released Friday.

The University of Michigan said its consumer confidence index dropped to 91.7 in October, down from 94.2 in September but higher than a mid-month reading of 87.5, according to market sources who saw the subscription-only report.

"Confidence is down a little bit, it seems to be driven by concerns about oil and about the future," said Steve Gallagher, economist at SG Cowen Securities.

>>>>With the economy growing robustly, employment continues to be the missing piece of the recovery. Job growth has proved anemic in recent months, and analysts will scrutinize next week's payrolls report for an update on the labor market.

The price of oil is at record highs and so are the oil industry's profits. BP, Conaco, and others posted record profits in the past month. The cost of oil will affect us this winter and will translate into higher prices for everything we purchase or manufacture.

Wasn't Iraqi oil supposed to ease this burden and fund the war? Oh, yeah.