Consumer confidence and sentiment have reset back to recession levels. That raises the problem of low spending for the holidays. It also may cause businesses to cut costs again in anticipation that households will save month rather than spend it. A new Gallup poll shows that there is an increase in the concerns Americans have about their personal finances. That will put yet another drag on the economy for the balance of these year and at least the early part of next
The Gallup data led the research firm to write, “Forty-nine percent of Americans are feeling better about their financial situations these days, representing a continuing downturn from the average of 53% who were feeling better in mid-summer.” It is the opinion of Gallup executives that the failure of the super committee to set a plan for deficit reduction will increase pessimism even further.
Whatever hope economists and Washington have that there will be a consumer recovery has begun to slip. People concerned about their own finances cannot be the basis of a robust rebound in GDP
Methodology: The results reported in this analysis are based on telephone interviews conducted as part of the Gallup Daily tracking survey, reported in five-week rolling averages beginning with the period spanning June 8-July 12, 2009, and ending with the period spanning Oct. 17-Nov. 20, 2011. Each five-week rolling average is based on a random sample of approximately 3,500 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia.
Douglas A. McIntyre
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