U.S. Consumer Confidence at 28-Year Low
A survey released Friday showed that U.S. consumer confidence has fallen to the lowest point since the "stagflation" of the early 1980s. According to the survey, lower-income households, citing rising food and fuel prices, were the main source of the drop in confidence.A survey released Friday showed that U.S. consumer confidence has fallen to the lowest point since the “stagflation” of the early 1980s. According to the survey, lower-income households, citing rising food and fuel prices, were the main source of the drop in confidence.
TRUTHDIG’S JOURNALISM REMAINS CLEARReuters:
Consumer confidence tumbled to its lowest in 28 years this month, a survey showed on Friday, as short-term inflation expectations reached the highest levels since the stagflationary early 1980s.
The news heightens the dilemma for the Federal Reserve, which has bet that slowing economic growth will tame inflation pressures. The report also showed that lower-income households were the focus of the downturn in sentiment.
The Reuters/University of Michigan Surveys of Consumers’ preliminary index of confidence fell to 59.5 in May, the lowest since June 1980. In April it was at 62.6.
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As mainstream outlets continue to focus on inflation, consumer sentiment about the economy remains staggeringly low.
Abenomics works much like Bernankenomics. In every case, looser monetary policies and tighter fiscal policies have generated more wealth for the 1 percent while working stiffs take it in the stern sheets. It all amounts to the same thing: Ferraris for the rich and bupkis for everyone else.
The recent jubilance among economic forecasters is enough to make even weather forecasters blush. “Just look at the bull market! Look at home prices! Look at consumer confidence!” I can understand the jubilation in the narrow sense that we’ve been down so long everything looks up. But prophecies can’t be self-fulfilling if they’re based on wishful thinking.
The Conference Board reported Tuesday that the preliminary January figure for consumer confidence in the U.S. fell to its lowest level in more than a year. So why are consumers so glum? Because they’re deeply worried about their jobs and their incomes -- as they have every right to be.
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