Auto Credit Express Blog
August 18, 2008
Latest Consumer Survey Shows Continued Weakness in Economy
In the latest preliminary Consumer Confidence Survey, the University of Michigan/Reuters poll shows a continued weakness in the U.S. economy.
Consumer Sentiment Remains Weak
Today, the University of Michigan/Reuters New Service released the latest preliminary index of consumer sentiment for the month of July. The preliminary report, which measures fewer households than the full report, showed an index reading of 61.7 – just .5 from the June index of 61.2. According to a Bloomberg survey, most economists were predicting an index rating of over 62 – especially considering the drop in oil prices and a corresponding drop in gasoline prices at the pump.
In an interview with Bloomberg Television, Arun Raha, an economist with Swiss Re, stated that “Consumers still remain pretty pessimistic. This little-higher number is probably the result of lower gas prices. The economy remains pretty weak and consumer sentiment reflects that. Gas prices are a component of how consumers feel, but the bigger component is how they feel about their jobs, how they feel about the value of their homes and so on. It’s still pretty low, but it has been moving up and the only reason I can think of is … gas prices have come down since the last time (these figures were) published. I think consumer confidence will remain pretty weak.”
Gallup Daily Poll
In other news, a Gallup Daily Poll released on August 17th shows that, currently, 70% of Americans hold negative views about the economy, while 19% hold mixed views, and only 9% hold positive views.
