Consumer Confidence Heads The Wrong Way

Companies and Brands

Published: January 31, 2012 10:12 am

Consumer Confidence is heading the wrong way. The report is just on the heels of a weak Chicago Purchasing Managers reading, and this data from The Conference Board is going to likely dampen expectations yet again.

The Index fell to a lower level in January to 61.1. This is down from the reading of 64.8 in December. It is also way under projections. Bloomberg had the consensus expectation at 68.0. Dow Jones was also expecting a reading of 68.0 for the January reading.

The Present Situation Index fell even more than the median point to 38.4 from 46.5. The only good news is that the “Expectations Index” was down only slightly as it slid down to a reading of 76.2 in January from 77.0 in December.

Consumer confidence may have already been tempered by some other retail data and also by the consumer income and spending data seen of late. Still, it is hard to say that a drop of this size was expected by any means.

Can you just blame gasoline prices being higher? That seems unlikely. Here was a quote from the Conference Board: “Consumers’ assessment of current business and labor market conditions turned more downbeat and is back to November 2011 levels. Regarding the short-term outlook, consumers are more upbeat about employment, but less optimistic about business conditions and their income prospects. Recent increases in gasoline prices may have consumers feeling a little less confident this month.”

JON C. OGG

Is Your Money Earning the Best Possible Rate? ^(Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!