Consumer Sentiment Continues to Falter

The mood of the consumer continues to be unsteady and unpredictable as indicated by the latest reading of the Reuters/University of Michigan consumer sentiment index.

Like the Conference Board's consumer confidence index, consumer sentiment has now declined for two months and, after surging from record-lows early in the year, current readings are down sharply from levels seen over the summer. It is important to remember, however, that even the September high of 73.5 is still quite low by historical measure.
The index dropped from a final October reading of 70.6 to just 66.0 in the first of two readings for the month of November. Deterioration seen in sub-indexes for both current conditions and expectations of the future fell 4.1 points and 4.9 points, respectively.

The labor market continues to be the primary reason for the anxiety felt by the American public, a completely understandable view of things given the news last Friday that the unemployment rate had risen to 10.2%, a 26-year high.

Comments

[optionsgirl]

No surprise here. With the job market this bad, how can the consumer feel confident?

2009 Nov 13 03:25 PM

[doubleguns]

I suspect it will get worse when consumers see that Christmas tree sitting less full or bare underneath as compared to previous years. Confidence will not be inspired.

See what the credit card companies are charging on balances? THAT won't add to confidence either.

I think the grinch will be visiting many homes, for those who still have one and confidence will be depressed along with the populace.

You could possibly do well in anti-depressant companies in the coming months, the pills will be great stocking stuffers.

2009 Nov 13 03:51 PM

[optionsgirl]

Long coal-- another stocking stuffer, lol.


On Nov 13 03:51 PM doubleguns wrote:

> I suspect it will get worse when consumers see that Christmas tree
> sitting less full or bare underneath as compared to previous years.
> Confidence will not be inspired.
>
> See what the credit card companies are charging on balances? THAT
> won't add to confidence either.
>
> I think the grinch will be visiting many homes, for those who still
> have one and confidence will be depressed along with the populace.
>
>
> You could possibly do well in anti-depressant companies in the coming
> months, the pills will be great stocking stuffers.

2009 Nov 13 03:56 PM

[doubleguns]

While living in PA with my grand parents when my dad was in NAM I got the lump of coal and a switch for Christmas. I was not happy with the joke but I enjoyed putting the coal in the furnace.

Should not have been chasing my aunt around with the earth worms I guess.

2009 Nov 13 04:08 PM

[robert.b.ferguson]

While I'm as baffled as David Fry is about consumer indexes the Dollar General (DG) and Rue21 (RUE) IPOs from Friday are up 6% and 26% respectively. Consumer discretionary any one?

2009 Nov 13 04:59 PM

[LilBob]

On Nov 13 04:59 PM robert.b.ferguson wrote:

> While I'm as baffled as David Fry is about consumer indexes the Dollar
> General (DG) and Rue21 (RUE) IPOs from Friday are up 6% and 26% respectively.
> Consumer discretionary any one?

I'm surprised those IPO figures aren't the other way around RBF. The Dollar General near me is second only to the Dollar Tree and Salvation Army stores in customer traffic.

2009 Nov 13 05:05 PM

[ProfElwood]

Considering that unemployment hasn't changed, and nothing that was wrong with our economy a year ago has really healed, I can't see how this is news.

2009 Nov 13 05:59 PM

[437339]

Re what the credit card companies are NOW charging for interest + thay expect the " consumer to spend " DREAM ON ! hey folks SINK this economy , DON"T buy S**t , except essentials , + those only when discounted . Especially boomers -SHUT your wallets . This government doesn't give a rat's a** about you . BOOMERS paid into Social Security for Decades , providing for their parents , grandparents , great grandparents , aunts + uncles etc .Now they say ' we can't put this debt on our children + grandchildren . TRUTH IS , as a very knowledgeble banker told me last week , " they , the government , have spent the social security funds on other things ".This is why there mUST be a pandemic now + rationing of healthcare for all retiress as they are no longer useful to the government , paying large taxes , or the illuminist bankers ie spending + paying interest . It is soo clear . Turn off the Damned TV + learn what is really happening to the US . it is " going as planned "!

2009 Nov 16 08:47 PM