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Consumer Comfidence Drops Like a Stone

Written by Gary North on May 30, 2012

Consumers finally have figured out that the U.S. economy is getting ready to turn down. Confidence fell sharply and unexpectedly in May. The Conference Board’s index fell from 68.7 in April to 64.9 in May.

Economists had predicted a rise. Instead, confidence fell to a five-month low. There was no warning. It caught forecasters flat-footed.

Europe is heading into recession. China is growing slowly. Its real estate markets have moved negative. Nowhere is there any indication of strong growth.

Consumers took months to catch on, but at long last, they have.

The job market is flat. Unemployment remains high.

Pessimism is deep. Of those surveyed, 13.6% said that business conditions are good. A mere 7.9% said the job market is providing a lot of jobs

Will conditions pick up in 6 months? Only 16.6% said yes. These readings were the lowest in 2012.

“The softening in [consumer confidence] suggests that the pace of economic growth in the months ahead may moderate,” said Lynn Franco, the director of economic indicators at The Conference Board. Moderate? Moderate from what? Economic growth has been the worst on record for a post-recession recover.

Stock prices have spooked investors. So has bad news from Europe.

Consumers watch the headlines. The economic headlines have been pessimistic for months. Consumers are finally catching on.

Continue Reading on money.cnn.com

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12 thoughts on “Consumer Comfidence Drops Like a Stone

  1. I have said that I will replace my 23 year old car either when it is totaled, or when I can no longer get mechanical parts for it. I cannot afford to sign a note on a new car. If Obama decides my boss is a Republican, he might shut down the place that I work, and I'd be out of a job.

    People who are bent on revenge don't know how to manage an economy. Putting a Democrat in charge of the economy is like putting Idi Amin in charge of race relations.

  2. Speeling Bea says:

    Who proof reads this stuff?

  3. Is anyone surprised??

  4. martin fee says:

    The only people surprised by this are those who live in fantasy land. You know the ones who still support mr obama and company. Anyone who lives in the real world and sees the price of cheap bread hitting two bucks and coffee over 12 bucks for four pounds knows that the obamaconomy is a joke and FAILURE

  5. fighting grandma says:

    All part of the plan to bring this country down…

  6. Paul Trombley says:

    "Will conditions pick up in 6 months? Only 16.6% said yes."

    Perhaps they should study business cycle theory while focusing upon the relationship of stimulus programs to cycles.

  7. Perhaps consumers now realize that the federal government cannot continue to borrow $1 trillion a year forever. This game will end someday and that day may be near.

  8. The act of booting the Kriminal Kenyan jungle bunny out of office, then off the planet, will do more to restart the economy than all the shenanigans that our elected crooks in the District of Criminals can conceive of.

  9. I have been saying that since he was a senator

  10. sean murry says:

    Yep we have a lot of crimials in DC.

  11. SteveHow says:

    Who are these economists anyway and why does anyone listen to them. These people are NEVER right. They are always surprised, caught off guard or it was unexpected. These guys are even worse than the weather folks. I do know that many take their predictions from the White House.

  12. Patriot says:

    Consumers finally have figured out that the U.S. economy is getting ready to turn down. NO one party (Dem or GOP) will be immune from our wrath. Tea Party supporters of no jobs will find themselves behind the 8 ball.