October 28, 2008

The confidence of the US consumer crumbles, low historical



The confidence of the American consumers crumbled in October on its low historical level because of the aggravation of the financial crisis and its propagation to the economy, according to the monthly survey of the Board Conference.

The confidence index fell to 38,0 compared with 61,4 in September, this last figure having been revised in light rise. The economists and analysts questioned by Reuters anticipated on average a figure of 52,0 and lowest of their estimates was of 45,0.

The lower precedent of this barometer of moral of the households, to 43,2, went back to December 1974.

“The impact of the financial crisis during the last weeks, weighed obviously on the confidence of the consumers”, declares in the study Lynn Franco, director of the research centre on the consumption of the Board Conference.

She adds that the judgement of the consumers on the market evolution of work and inflation worsened, and that “that is not good omen for the distributors, which prepare already with what is announced like one season of the festivals of very difficult end of the year”.

The component of the judgement of the consumers on their current location returned from 61,1 to 41,9, with low since December 1992. It was to 118,0 one year ago.

That of anticipations plunged to 35,5 compared with 61,5 in September and 80,0 in October 2007.

The average anticipation of inflation of the consumers in parallel passed to 6,9% - its more high level since July - against 6,2% last month.( Finance Information City )

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