Consumer Sentiment Stays Above 70 for 3 Months for the First Time Since the Start of the Recession
According to the University of Michigan, Consumer Sentiment fell slightly in February to 73.7 from 74.4 in January but has now remained above the 70 level for the last three months in a row (72.5, 74.4 and 73.7 in December, January and February), for the first time since the recession started during the three-month period from December 2007 to February 2008 (see chart above), signalling a gradual restoration of consumer confidence about the economy.Compared to February a year ago, Consumer Sentiment is up by almost 31%, the greatest annual increase since the early 1990s (see chart below).
3 Comments:
Hmmm, well if one listens to Faber one might not think so...
Marc Faber Says that the United States AND Europe Are Destined for Default
Short video clip on CNBC dated February 10, 2010...
Consumer confidence surveys only matter if one believes that consumer spending drives our economy. The fact is -- as we've known for a century and a half -- that supply creates demand.
In other words, business must expand before consumers can spend. Can't buy nuthin' without a job, after all.
"In other words, business must expand before consumers can spend. Can't buy nuthin' without a job, after all"...
Excellent point Craig but IF the US should default what will the pay be worth then assuming one could still be working?
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