Consumer confidence is an important economic indicator that measures how consumers are feeling at the present moment. Consumer confidence is important because most industrialized economies are reliant on the consumer to drive the economy. If consumer confidence is rising, that means people feel the future is most likely prosperous; if consumer confidence is falling, that means people are worried abut the future. However, like many economic indicators, consumer confidence can be a contrarian tool. This means that when consumer confidence is at its weakest, the economy might be at a turning point.
Consumer confidence in the U.S. fell to a six-month low in May as Americans became less sanguine about the prospects for the economy.The University of Michigan reported on Friday May 29, 2015 that its final index of sentiment for the month decreased -5.4% to 90.7 from 95.9 in April. It marked the biggest decline since the end of 2012. (Source:. Read More
I am not surprised that the retail sales remained unchanged in April. Although warmer weather is upon us, the April retail sales data did not warm up the way the industry would have liked.Retail Sales and Consumer Confidence FadingAfter barely growing in the first three months of 2015, U.S. retail sales were flat in April and continue. Read More
It’s widely expected that at the end of this month, the Federal Reserve will end its third round of quantitative easing (that began in September of 2012). This is QE3, where the Federal Reserve was printing $85.0 billion of new money every month and using it to buy U.S. Treasuries and mortgage-backed securities (MBS). In the beginning. Read More
In the first quarter of 2014, Retail Metrics, a retail industry research firm, found U.S. retailers missed their corporate earnings estimates by the most since the year 2000!As I have been writing, consumer spending only increases when consumer confidence is rising. Unfortunately, in the U.S. economy today, that confidence is plummeting.. Read More
All of a sudden, auto sales are declining…Auto sales in the U.S. economy declined to an annual rate of 15.4 million units in December. In November, this number stood at 16.41 million units—a decline of more than six percent. (Source: Motor Intelligence, January 3, 2014.) Analysts were caught off guard by the decline in December auto. Read More