Friday, June 26, 2009

Consumer Confidence Rises 4th Straight Month for the First Time Since the End of the 2001 Recession

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LA TIMES -- Confidence among U.S. consumers rose this month for a fourth straight time, reflecting signs that the worst of the recession has passed. The Reuters/University of Michigan final index of consumer sentiment gained to 70.8, the highest level since February 2008, from 68.7 in May.

Recent reports show some areas of the economy, such as housing and manufacturing, are seeing a smaller pace of decline, consistent with the Federal Reserve's projection this week that the slump is "slowing." Government data today indicated that efforts to revive the economy are allowing consumers to spend even with unemployment at a 25-year high. The data also showed savings surged to the highest level since 1993.

MP: The last time the Michigan consumer sentiment index increased in four consecutive months was the period from October 2001 to January 2002, which signalled the end of the 2001 recession (see shaded area in chart above). The four-month cumulative increase of 14.5 points in consumer sentiment from March to June 2009 (see shaded area in chart) is even greater than the 11.2 point increase in late 2001-early 2002.

9 Comments:

At 6/26/2009 11:14 AM, Anonymous Chris said...

Beware of the "double-dip" recession....

 
At 6/26/2009 11:44 AM, Anonymous Anonymous said...

Kind of wonder what news they are watching. They must really be buying the stuff the Obama administration is selling. Layoffs are still happening, unemployment is still growing, and I see no real sign of a US recovery.

 
At 6/26/2009 1:16 PM, Blogger KJ said...

Anon - maybe you should get out more and open your eyes...the train's leaving the station...

 
At 6/26/2009 5:52 PM, Anonymous Anonymous said...

KJ, check back with me in 6 months and see if employment is any better. Stocks may be turning around, but with out job creation, what good is it?

 
At 6/26/2009 9:29 PM, Anonymous Anonymous said...

Anonymous 1,

The stock market is a LEADING economic indicator. Unemployment is a LAGGING economic indicator.

 
At 6/26/2009 10:37 PM, Blogger bobble said...

KJ:". . the train's leaving the station..."

sorry KJ, the train *left the tracks* 9 years ago. getting the train back on the tracks will take a long time.

GDP tanks after 2000
link

private job growth tanks after 2000
link

 
At 6/27/2009 4:24 AM, Blogger 1 said...

"sorry KJ, the train *left the tracks* 9 years ago"...

On which planet?

Hmmm, are you a victim of Economic Reporting: Then and Now?


June 26, 2009 is the day train was blown off the tracks so one wonders about this alledged consumer confidence...

 
At 6/27/2009 11:55 AM, Blogger Jeff Herron said...

http://www.lewrockwell.com/north/north723.html

Consumer confidence is the next bubble. Don't get sucked in.

 
At 6/29/2009 12:08 PM, Anonymous Anonymous said...

"The Austrians are coming, the Austrians are coming....."

 

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