Consumer confidence plunges, inflation rate soars

[marmar]

from AP, via Yahoo!:



Confidence plunges, inflation rate soars 1 hour, 8 minutes ago



NEW YORK - No good news today on the economic front. Consumer confidence plunged, the wholesale inflation rate soared, the number of homes being foreclosed jumped, home prices fell sharply and a report predicts big increases in health care costs.

Consumer confidence weakened significantly as Americans worry about less-favorable business conditions and job prospects. The New York-based Conference Board says in a report released on Tuesday that its Consumer Confidence Index plunged in February to 75.0 from a revised 87.3 in January.

The reading — the lowest since the index registered 64.8 in February 2003 — is far below the 83.0 analysts expected.

The index measures how consumers feel now about the economy. It has been weakening since July, suggesting that wary consumers may retrench financially, which could fatigue the economy further.

Inflation at the wholesale level soared in January, pushed higher by rising costs for food, energy and medicine. The monthly increase carried the annual inflation rate to its fastest jump in a quarter century.

The Labor Department said Tuesday that wholesale prices rose 1 percent last month, more than double the 0.4 percent increase that economists had been expecting.

The January surge left wholesale prices rising by 7.5 percent over the past 12 months, the fastest pace in more than 26 years, since prices had risen at a 7.5 percent pace in the 12 months ending in October 1981.

The number of homes facing foreclosure jumped 57 percent in January compared to a year ago, with lenders increasingly forced to take possession of homes they couldn't unload at auctions, a mortgage research firm said Monday.

Nationwide, some 233,001 homes received at least one notice from lenders last month related to overdue payments, compared with 148,425 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the total involved first-time default notices. ......(more)

The complete piece is at: http://news.yahoo.com/s/ap/20080226/ap_on_bi_ge/economy_rdp

[Turbineguy]

1. Real estate falling off a cliff

As Professor Fate would say "We're under water! We're Dooooomed!

[marmar]

2. I know...It's getting frighteningly ugly.

[Harry Monroe]

3. But...Bush said it is only a slowdown!!!

Shouldn't we believe him??:sarcasm:

[El Pinko]

4. Amazing that sentiment is higher still than 2003. Things are so much worse now...

nt