s skippy the bush kangaroo

skippy the bush kangaroo



Tuesday, July 29, 2003

we're confident that down is up

there's good news and bad news.

the good news is, if you read money magazine or watch abc news, consumer confidence is up modestly.

the bad news is, if you read or watch anything else in the world, consumer confidence is down sharply.

yahoo reports that the consumer confidence index, the one everyone actually considers important, dropped 7 points in july, from 83.5 to 76.6. this is especially disheartening because analysts expected a 1.5 increase. of course, those analysts actually had jobs, and really weren't clued into reality:

the rising level of unemployment and sentiment that a turnaround in labor market conditions is not around the corner have contributed to deflating consumers' spirits this month," said lynn franco, director of the conference board's consumer research center. "expectations are likely to remain weak until the job market becomes more favorable."

and why do we care how confident consumers are?

economists closely monitor consumer confidence because consumers spending makes up for two-thirds of all economic activity in the united states and has been a key element in keeping the struggling economy afloat.

but if you're a republican, or sam donaldson, or anyone else in denial, you may want to read forbes.com, which reports that the abc/money magazine consumer confidence index actually rose slightly last week:

the abc news/money magazine consumer comfort index rose to -17 in the week ended july 27, near its firmest levels of the year, compared to -21 in the previous week.

so who are you going to believe? reality or peter jennings?
posted by skippy at 8:10 PM |

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