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BY JIM FLINK
ANCHOR LAUREN GORES
U.S. consumer confidence took a gut-punch this month, dropping to its lowest level this
year. The news comes just 30 days after confidence had hit a five-year high.
Here’s CNBC’s Rick Santelli with the roller coaster numbers.
“74.1. Out last look at 79.3 was the loftiest level since the Fall of ‘07. 74.1 now can
change. It is preliminary.”
Consumer sentiment is important because it’s seen as a predictor of consumer spending,
which accounts for two-thirds of the American economy. Global Economic Intersection says
of the latest numbers -- “ruh-roh.”
“The trend in sentiment since the Financial Crisis lows had been one of slow improvement,
but it topped out in February of last year at 77.5 and plunged to an interim low of 55.7
in August. The steady rise since the August trough has been encouraging. But today’s
report raises the possibility of reversal of the trend....”
That reversal, is apparently fueled by fears across the pond reverbing back stateside.
Daily FX has its take.
“With Europe’s debt crisis dampening share prices, there is an increased risk that consumer
spending will stagnate as households worry over dropping stock values and declining job
growth.”
The numbers certainly send a message to the Obama administration. Obama economic advisor
Austin Goolsby took note, during a roundtable on Bloomberg.
“As we get closer and closer to the election, there are fewer and fewer things that can
start working right away.” "There are definitely some bright spots in
the economy in manufacturing and export-oriented industries...”
"We ought to be doing more of that..."
But if the economy is sending shivers across main street, Wall Street seemed to shrug them
off. The Wall Street Journal noting...
“Stocks are higher this morning, as investors yet again seem to be ignoring the world’s
problems and instead are focused on the potential load of cheap money that could be coming from
global central bankers.”