The U.S. consumer sentiment unexpectedly fell in October. This worries economics because consumer spending accounts for such a high level of our economic recovery stimulus. Dropping from 68.2 to 67.9.
What do you think is causing this decrease in consumer confidence?
6 comments:
I think it because the US poverty rate has increased and so there are more people below the poverty line. Since news of this came out recently people are less likely to spend money or have faith in the economy
As the economy slowly turns around, more people are earning more cash, but consumer confidence is low because too many are worried about their future jobs, mortgages, etc. It is much more valuable for them to hold onto money instead of spending it. Consumers are also cutting back on luxury items and unnecessary products that hurt the consumer rating
I think consumer confidence decreased because people don't think the economy is going to turn around soon. Since they think the recession will continue to last people are saving their money for the long haul. They are cutting back on luxury items and big ticket items and are only buying what they truly need. They do not want to spend their money because they feel they will need to save it for the long recession.
I agree with kody and andrew.. Most people want to save what they have because they don't see anything changing within the economy.. I can't blame them either, with such high govt spending there is only short term effects. In the long term this is only delaying a actual recovery.
Consumer confidence has fallen because people do not see the economy greatly improving anytime soon. Even though stocks are rising there is still high unemployment in the U.S. This makes people cautious about spending there money and going places. Also the deficit in this country is extremely high as well. No one really knows what is going to happen yet are scarred to use up there resources.
Don't you think it is because of the upcoming election in November? The Democrats say the economy is gonna turn around soon, the Republicans say it's not. I think the consumers are confused and afraid of not knowing what's best for them so they stay idle until the election is over so they can know what Americans really want and later decide whether or not they should spend. I think consumer confidence will go back up next month
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