The Conference Board consumer confidence shows the lowest number ever recorded at 38. This is worse than the end of the go-go 60's, the inflation shock in '74, the Fed rate shock in the early '80's, the savings and loan recession of 1990, tech bubble, and the 9/11 scare. The pessimism is across the board for all age groups and all income groups. A decline in expectations for consumers will translate into slower growth; however, the number show that these lows are often short-lived and will usually see a quick bounce.
Expect the Fed to lower rates to provide some support to offset this gloom.
No comments:
Post a Comment