Thursday, September 29, 2011

Consumer belief in the economy reaches second weakest in history

When consumers are happy with their job situations and the economy, then consumer spending seems to go hand in hand with that happiness.  However, besides the fact that consumer confidence on jobs reached a low not seen since 1983, we now discover that consumer comfort is at a near record low as well.

As ES levitates 20-30pts off overnight lows on 'incredible' macro data and 'hope' in Europe, Bloomberg's Consumer Comfort Index just printed the second-lowest reading ever as 93% of those surveyed had a negative opinion of the economy. In almost every demographic, sentiment has fallen to near record lows (except we do note that in the last week those earnings 75k or more modestly improved their outlook though still drastically low). Perhaps the most critical sub-index, given the dependence on a consumer who is not paying his mortgage and living off food stamps, is the Buying Climate, which has only been lower during Q3 2008. We assume the congressional 'super-committee' is paying attention. - Zerohedge

(Chart courtesy of Bloomberg)

So tell us readers... what do you think this chart foretells for the Christmas season, which is just 3 months away?

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