This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Declining Consumer Confidence Echoes Jittery Stock Market

NEW YORK ( TheStreet) -- Americans may have thought they had escaped the clutches of the five-year economic downturn, but the latest consumer confidence data says "not so fast" and mirrors this week's swoon in the stock market.

In fact, to paraphrase Al Pacino, "just when I thought I was out, they pull me back in."

Fresh data from the Bloomberg Consumer Confidence Index has the news, and it's not good for the economy, although it may have a silver lining for homeowners and home buyers.

The index shows U.S. consumer confidence at a two-month low, just as the data showed consumer sentiment on the economy at a four-year high in February.

Tepid employment numbers, along with slowing U.S. manufacturing data and high gasoline prices, are feeding the beast this month, as Bloomberg notes consumers' view April and May to be a "bad time to buy needed items."

Overall, U.S. gross domestic product has fallen to 2.2%, based on the latest reading from the federal government.

Souring attitudes on the economy are particularly prevalent among middle-class consumers, widely viewed as the demographic group squeezed hardest by the Great Recession -- and its harsh aftermath.

"The reversal of gains in confidence has been particularly pronounced in middle-income groups that are likely caught between sluggish wage increases and rising inflation that has eroded their real purchasing power," notes Joseph Brusuelas, a senior economist at Bloomberg LP in New York City. The deterioration "does not bode well for household consumption."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs