In depth - Confidence plunges among US consumers

Financial Times by Krishna Guha, Anuj Gangahar, Saskia Scholtes, Jonathan Birchall, Daniel Pimlott | Oct. 17, 2008 (News Analysis)

US consumer confidence has fallen more sharply this month than in any month since records began in 1978, a widely followed survey showed on Friday, raising fresh fears about consumer spending.

The University of Michigan consumer sentiment index fell from 70.3 in September to 57.5 in October, well below economists’ expectations. The sharp deterioration raises the danger that US households, scared by the extraordinary events of recent weeks and ... Full Story »

Posted by Marsha Iverson

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Subjects: World, U.S., Business
Topics: Global Economy, U.S. Economy
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Posted by: Posted by Marsha Iverson - Oct 20, 2008 - 10:24 AM PDT
Reviewed by: Marsha Iverson (review)
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Edited by: Marsha Iverson - Oct 20, 2008 - 10:30 AM PDT
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Marsha Iverson
4.3
 by Marsha Iverson - Oct. 20, 2008

This is a useful overview of economic factors in today's grim environment, illustrating the concepts of "consumer confidence' by linking to the facts from one of the latest retail victims, Linens N Things, and the continuing decline in new home construction. While I find this interesting and informative, I would like to see a new perspective that steps beyond the traditional economic model--a tall order for an overview.

It is interesting to contemplate the traditional ways we view the connection between consumer confidence, consumer spending, and a global financial collapse. And it is challenging to do so without lapsing into profound irony. Perhaps we need a new economic model that can give a more useful assessment of the entire economic system, and a better way of predicting a successful solution.

The US consumer pull-back comes as banks and finance companies cut back on consumer credit, in particular car loans, amid growing evidence that consumers are struggling to ... More »

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