Tuesday, February 23, 2010

Consumer confidence down again

Americans' outlook on the economy went into relapse in February. Rising job worries sent a key barometer of confidence to its lowest point in 10 months, raising concerns about the U.S. economic recovery.

The Conference Board said Tuesday its Consumer Confidence Index fell almost 11 points to 46 in February, down from a revised 56.5 in January. Analysts were expecting only a slight decrease to 55. It was the lowest level since the index recorded a 40.8 reading in April 2009.

The increasing pessimism, which erased three months of improvement, is a big blow to hopes that consumer spending will power an economic recovery. Economists watch the confidence numbers closely because consumer spending accounts for about 70% of U.S. economic activity.

The American economy is no longer based on making things.

It's based on selling each other goods and services.

There will be no economic recovery until there is increased consumer spending, which will only follow increased consumer confidence.

Unfortunately, no one in charge is inspiring confidence.

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