Consumer confidence down
September 9, 2005
Consumer confidence is down in the US at the beginning of September based on figures provided by the RBS CASH index. The index showed consumer confidence down to 61.5, its lowest level since March 2003, and down from 72.6 in August and drastically lower than the 103.4 level of the same time last year.
At least one analyst blamed the decline on “fear and uncertainty” in the wake of Hurricane Katrina and on soaring prices for oil and the products made from it. Besides economic concerns, confidence seems also to have been shaken by what is seen by many as a slow response of the US government to the aftermath of the storm.
The biggest drop in the survey was in consumers expectations for the economy over the next six months, which registered a negative 13.5 in the latest survey, the lowest on record and the first time the index has ever gone negative. The August figure was 32.2.
Again, analysts cited Katrina and soaring oil prices as key reasons for this decline, as well as consumer fears that the “housing bubble” could burst at any time. The index is based on polling by international pollster Ipsos.
Polling took place Tuesday through Thursday and included 1,005 respondents who were asked about the opinions concerning the economy and personal finance. The poll’s results have a margin of error of plus or minus 3.1 percent.
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