Consumer confidence falls to near 16-year low

[Amerigo Vespucci]

Source: MSNBC

NEW YORK - A private research group says that soaring gas prices and weakening job prospects left shoppers gloomier about the economy in May, sending a key barometer of consumer sentiment to its lowest level in almost 16 years.

The New York-based Conference Board said Tuesday that its Consumer Confidence Index dropped to 57.2, down from a revised 62.8 in April. Economists surveyed by Thomson Financial/IFR had expected a reading of 60.

The May reading marks the fifth straight month of decline and is the lowest since the index registered 54.6 in October 1992.

Read more: http://www.msnbc.msn.com/id/24839783/

[Doctor_J]

1. 16 years....that rings a bell

Oh, yeah. Bush the Not Quite As Stupid was president. The Bush Family is to America what bone cancer is to the human body.

[aquart]

2. The Bush Family?

You mean those people the Obama camp equates with the Clintons?

Thanks for reminding me of something else I won't forgive.

[Dr.Phool]

5. Talk about starting a fight in an empty room.

Sheesh.

[no_hypocrisy]

3. Well, SURE . . . Credit's been cut off to buy stuff that consumers couldn't afford to buy with

their own assets.

[electropop]

4. Things haven't been this bad since, well, since the previous Bush.

It's a Bush economy - what else would you expect?

[Baby Snooks]

6. Proof positive they juggle the figures...

I don't think anyone in this country who has less than a million or two in assets has ANY confidence in anything at this point. And even some who have a million or two in assets is losing confidence.

We are on a sinking ship. And the rats have hijacked the lifeboats.

[onehandle]

7. America will Never elect a Republican again!

Until they forget in four years and fuck us up all over again.

[whistle]

8. So much of coincidental economic indicators

<snip>
Economic indicators

Recognizing the importance of knowing about future economic conditions, the US government has published since 1938 a list of measures and indexed that are indicative of what has happened, what is happening and what is about to happen. These are the lagging, coincidental and leading indicators which were mentioned in Chapter 1 Section D-3 . The leading indicators are those that precede the cycle; they usually peak before the entire economy, and reach their trough likewise; they are therefore used to anticipate the timing of the turning point (and thus, are often considered as the important ones). Coincidental indicators are indicative of what is taking place in the economy right now. Lagging indicators are those that come after the turning point; they are used to confirm that a phase of the business cycle has indeed been completed. Table T-15.2 shows the series included in each group.

Table T-15.2

Composition of leading, coincidental and lagging indicators:

Leading Indicators
Net business formation index
Building permits index
Common stock prices index
Percent lay-offs in manufacturing
Percent change in sensitive prices
Percent change in total liquid assets
Percent vendor companies reporting slower deliveries
Average workweek in manufacturing
Net change in inventories
Plant and equipment contracts and orders
New orders for manufacturing consumer goods and materials
Money supply

Coincidental indicators
Industrial production index
Employee payroll (non-agricultural)
Personal income less transfer payments
Sales manufacturing and trade

Lagging indicators
Labor cost index
Ratio of consumer installment debt to personal income
Average prime rate charged by banks
Average unemployment duration
Inventories manufacturing and trade
Commercial and industrial loans outstanding
Source: US Bureau of Economic Analysis, Survey of Current Business

http://peoi.org/Courses/finanal/ch/ch15c5.html

[Robbien]

9. No problem says CNBC. Wages are being kept in check, so all's good.

As long as management can keep the wage costs down, an inflation caused depression is not a worry for investors.