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Betreff des ThemasConsumer Confidence in U.S. Plunged to Record Low
URL des Themashttps://aktien-portal.at/forum/../forum/boerse-aktien.php?az=show_topic&forum=124&topic_id=59260&mesg_id=60041
60041, Consumer Confidence in U.S. Plunged to Record Low
Eingetragen von Finanzer, 28.10.08 15:23
Consumer Confidence in U.S. Plunged to Record Low

U.S. consumer confidence fell to the
lowest level on record in October as stocks plunged and banks
shut off credit, raising the risk spending will tumble.
The Conference Board's confidence index decreased to 38,
less than forecast and the lowest reading since monthly records
began in 1967, the New York-based research group said today. A
separate report showed home values continued to drop in August.
Household wealth has evaporated as the Standard & Poor's 500
index verged on its worst one-month loss in 70 years, home equity
shrank and job losses mounted. The dimming outlook signals
consumer spending, which accounts for more than two-thirds of the
economy, will deteriorate further, deepening the U.S. slump.
``Collapsing consumer confidence appears to be reinforcing
the economic downturn, with labor market weakness poised to
intensify,'' Robert DiClemente, chief U.S. economist at Citigroup
Global Markets in New York, said in a note before the report.
The report underscores voter discontent with the country's
direction heading into the Nov. 4 presidential election. A
majority of voters think Illinois Senator Barack Obama, the
Democrat, will be better able to handle the economic turmoil,
according to polls.
Consumer confidence was projected to drop to 52, according
to the median estimate in a Bloomberg News survey of 66
economists. Forecasts ranged from 45 to 56.6. September's reading
was revised up to 61.4 from an originally reported 59.8.
The 23.4-point drop this month was the third biggest on
record, trailing two plunges in the early 1970s linked to oil
shocks. Measures on current conditions and expectations both
declined.

Home Values

Home prices in 20 U.S. metropolitan areas dropped 16.6
percent in August from the same month in 2007, the fastest pace
since year-over-year records began in 2001, a report from
S&P/Case-Shiller today also showed. For a fifth consecutive
month, all areas showed a decrease in prices from a year earlier.
The housing slump is likely to extend well into a fourth
year as foreclosures put more properties on the market and drive
down prices even more.
The Conference Board's measure of present conditions dropped
to 41.9 from 61.1 the prior month. The gauge of expectations for
the next six months slumped to 35.5 from 61.5.
The share of consumers who said jobs are plentiful dropped
to 8.9 percent from 12.6 percent last month. The proportion of
people who said jobs are hard to get jumped 5 points to 37.2
percent.
The proportion of people who expect their incomes to rise
over the next six months dropped to 10.8 percent from 15.1
percent. The share expecting more jobs decreased to 7.4 percent
from 11.9 percent.

Other Measures

The confidence figures corroborate declines seen in other
measures. A report earlier this month showed the
Reuters/University of Michigan preliminary index of consumer
sentiment decreased in October by the most on record.
The Conference Board's index tends to be more influenced by
attitudes about the labor market, economists have said.
The economy lost jobs for nine consecutive months through
September, bringing the total drop in payrolls to 760,000 this
year, Labor Department figures showed. Some economists anticipate
job losses accelerated in October.
Consumer spending probably dropped last quarter by the most
in almost two decades, economists forecast a Commerce Department
report will show in two days. As a result, the economy probably
shrank from July to September, the survey showed.

Fewer Purchases

Today's confidence report showed fewer people planned to
purchase automobiles and major appliances. Home-buying plans
improved.
The slump in spending may be even bigger this quarter as
consumers retrench. The International Council of Shopping Centers
predicts the November-December holiday season, which brings in
more than a third of some retailers' annual sales, will be the
weakest since 2002.
The credit freeze ``impacted consumers' attitudes,'' Farooq
Kathwari, chief executive officer of home-furnishings retailer
Ethan Allen Interiors Inc., said in a Bloomberg Television
interview this month. ``People are cautious, people are holding
back.''
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