Consumer Confidence Slips in May

By THE ASSOCIATED PRESS

Published: May 28, 2004



Filed at 11:20 a.m. ET

NEW YORK (AP) -- Consumer optimism slipped in May despite recent strength in the labor market, according to a new survey.

The closely watched University of Michigan's consumer sentiment index was at 90.2 in May, down from 94.2 in a preliminary report for the month and 94.2 seen in April, according to people in the market who saw the report Friday.

The university's measure of consumer expectations came in at 81.6 in May, down from 85.8 in the mid-month report and 87.3 in April.

The current conditions index for May also fell to 103.6 from 107.2 in the mid-month report and 105.0 in April.

The University of Michigan report is released only to subscribers.

The souring of consumer sentiment comes amid a surge in hiring by U.S. companies after years of sluggish labor conditions. The Department of Labor has reported non-farm payrolls swelled by 288,000 in April and 337,000 in March.

http://www.nytimes.com/aponline/business/AP-Consumer-Confidence.html

'The recovery will be here next quarter', May 2001; MSGOP, CNBCGOP, CNNGOP, CBSGOP...

I almost choked on my coffee when i heard that...

"Retailers blame the weekend slump on the release of 'Shrek II'..."

Oh, please....people went to the movies instead of doing their jingoistic duty and signing their paycheques over to Wally-World?

Could it be maybe we're just running out of money? We spend and spend, like the pretzeldunce tells us to, but we ain't gettin' any safer?

What was that slogan during the Hoover years? "Prosperity is JUST around the corner!"

"Yeah, but WHAT corner?"

...that shrub put out in front of Joe America's feet that causes this "slip"...

Whoooopppseeedaaaaaaaaaaasssssieeeeeeeeees!

They know that a jacking in oil and gas prices is always followed by hard times in a few months. In this present circumstance, they damned well know who to blame for it, too....

The endless predictions of economic recovery "soon" remind me of a German soldier's memory of Verdun in 1916: "'One more push,' the officers said, 'And we shall have it.' They said it in April. They said it in May and in June and July. In August, they did not say it anymore."

"LET'S GO GET THOSE BUSH BASTARDS!"

"You can fool some of the people all of the time, and those are the ones you need to concentrate on." GWB

http://news.bbc.co.uk/1/hi/world/americas/1241240.stm

You might enjoy Mr. Thurber's take on the old Lincolnism: "You can fool too many of the people too much of the time."

"LET'S GO GET THOSE BUSH BASTARDS!"

"There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again." —George W. Bush, Nashville, Tenn., Sept. 17, 2002

have been boycotting the economy (with the exception of staples)? I know that there are many things I'm holding off on until after * is out.

Big business as well as everyone else can pretty much predict what Bush's tax policies will be if elected in 2004.

However Kerry is a different story:

As polls show Kerry leading Bush there will be more uncertainty about tax policies of a new administration.

There's also the issue of interest rates and Allan Greenspan's tenure ends next month.

Bush probably won't reappoint him:

1. He increased interest rates in 1990 which caused the 91-'92 recession. That economic slump cost pappy Bush the election.

I think Greenspan supported Bush's tax cuts more out fear of revenge (a la "Saddam tried to kill my daddy") than rationality.

2. Greenspan is not a neocon. I'm sure the folks at PNAC have someone they prefer.

All this is leading to uncertainty. I think its being reflected in the stock market.


Oh, a note on consumer confidence survey.

That data is notorious for its bias because many people surveyed usually answer questions based on what they've read or heard on the news rather than their actual spending plans.

EOM

My bad!

http://story.news.yahoo.com/news?tmpl=story&cid=668&ncid=749&e=6&u=/ap/20040528/ap_on_bi_go_ec_fi/economy


what I love is this quote:

"Economists said an improved job climate is lifting wages and aiding income growth. "We are making our money the old-fashioned way, we are earning it," said Joel Naroff, president of Naroff Economic Advisors. "People have money to spend and they are doing just that," he added."


Interesting, because I don't know anyone who has received a real raise in about four years.