Last Updated:November 24 @ 07:25 pm

Consumer confidence drops, far below healthy level

By Anne D'innocenzio

NEW YORK (AP) - A private research group says that consumer confidence unexpectedly fell in August to the lowest level since November 2011, as Americans' outlook about jobs flared up.

The New York-based Conference Board says Tuesday that its Consumer Confidence Index fell to 60.6, down from a revised 65.4 in July. Economists had expected a reading of 66. The index now stands at the lowest point since November 2011 when the reading was at 55.2.

The indicator is widely watched because consumer spending, including major purchases like health care, accounts for 70 percent of U.S. economic activity.

Despite several brief spikes, the index has remained well below the 90 reading that indicates a healthy economy - a level it hasn't touched since the recession began in December 2007.

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1 Comment

  1. JDZComment by JDZ
    August 28, 2012 @ 7:33 pm

    Consumer confidence based on spending is going to stay down until the unemployment rate drops to some reasonable number. The published government unemployment rate of 8.3% understates the problem because of the way it is calculated leaving out those that have stopped looking for work or have run out unemployment benefits. The true rate is closer to 15 to 20 percent which is a national disaster for our country especially when most of them are in the middleclass which sets the metrics for the country and is a direct measure of the health of the economy.

    The Obama administration policies, especially those from the EPA, are hamstringing our private companies and making it harder for them to compete. The new and expanded regulations on everything a small business does from HR practices, their supply of goods needed to build products, the machines they use, the design of their facilities, the EPA requirements, the regular inspections by government, their energy sources, their financial records and other documents required by government, the impact of Obamacare, to the cost of transportation and energy are actually keeping potential small businesses from starting and from existing companies from expanding. This government oversight and control through regulation of our private economy is a backdoor way of nationalizing our private companies and is typical of communist countries.

    The first step to turning this national embarrassment around is to put someone in the Whitehouse who knows what drives or hampers our economy, and that person is Mitt Romney.

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