Higher consumer confidence in February doesn’t help US president
February 9, 2007
Consumer confidence in the US is higher than it has been in 2 ½ years, according to the RBC Cash Index. The index, which is based on the results of polling by Ipsos, rose to 103 in February, up from 95.3 in January. There was some concern among poll respondents about how the US economy will fare in the next half-year, worries that were attributed by analysts to problems in the housing and automobile sectors. That component of the index dropped to 69.2 for February, down substantially from its reading of 83.3 in January.
Respondents are happy with current economic conditions, however. That component of the index was at 114 in February, the highest its has been in five months. The results of the February poll also showed that consumer are upbeat about the job market, with that component of the poll at 131.9 for February, the highest it has ever been. While the unemployment rate was up to 4.6 in January, according to a government report, joblessness is still lower than it has often been. Feelings about saving and spending money were also better in February, with that index at 102.4 after having been at 83.2 in January.
Better consumer confidence has not translated into better approval ratings for US President George W. Bush. Mr. Bush’s job approval rating fell to 32 percent, equaling its lowest level ever. Forty-two percent of respondents approved of his work on the economy, while 55 percent disapproved of the way he is handing the nation’s financial issues.