Friday, July 16, 2010

Consumer Sentiment Drops to 11-Month Low

A survey conducted by Thomson Reuters/University of Michigan named Thomson Reuters/University of Michigan's Surveys of Consumers, found consumer sentiment has fallen to its lowest level in almost a year.

This is an extraordinary turn of events over just a month, as last month the highest level of consumer sentiment had been reached in almost 2-1/2 years. When it is built more on wishful thinking and hope rather than realities of the economy, these types of huge swings can happen quickly, and it of course now has.

In June the numbers were at 76.0, while in July the plunged to 66.5. Economists had been looking for 74.5.

Director of the surveys, Richard Curtin said this, "Income and job prospects were extraordinarily weak and those bleak prospects have made consumers much more cautious spenders."

After the Democrat-controlled Congress stopped their irresponsible spending spree, the reality the economy wasn't growing but was rather being artificially propped up is setting in, and consumers are understanding we've never left the recession, and there hasn't been a recovery.

Consumers also said in the surveys that they aren't going to be buying any big ticket items like automobiles in the foreseeable future, showing again the hype about a recovery was largely reported by the mainstream media as a reality to prop up Obama and the Democrats, rather than hard reporting on the fact that we're still in a recession.

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