News In Brief

Consumer confidence still sliding

Paddy Hirsch Aug 26, 2011

Confidence among U.S. consumers dropped in August to the lowest level since November 2008.. The Thomson Reuters/University of Michigan final index of consumer sentiment said it’s really all the government’s fault.

“Consumers have shifted from being optimistic about the potential impact of monetary and fiscal policies to a sense of despair and pessimism about the role of the government,” survey director Richard Curtin said in a statement.

Recent political wrangling over raising the U.S. debt ceiling appeared to take its toll, Reuters reported. Spontaneous negative references to the government were made by 25 percent of respondents, above the prior record of 20 percent in April 2010.

Bloomberg said the report parallelled its own Consumer Comfort Index, which is now close to an all-time low.

The index of consumer expectations for six months from now, which more closely projects the direction of consumer spending, dropped to the lowest level since May 1980, Bloomberg reported.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

Need some Econ 101?

Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.