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Consumer Sentiment Up Unexpectedly

From the endlessly surprised Associated Press:

Consumer sentiment improves more than expected

By Christopher S. Rugaber, AP Economics Writer

WASHINGTON – Consumer sentiment rose more than expected in August and expectations hit the highest level since the recession began, indications that Americans’ pessimism about the economy may be lifting.

The housing sector also showed signs of life as a national measure of home prices posted its first quarterly increase in three years.

The New York-based Conference Board said Tuesday its Consumer Confidence index rose to 54.1 from an upwardly revised 47.4 in July. Economists surveyed by Thomson Reuters had expected a slight increase to 47.5.

Still, the index is well below 90, the minimum level associated with a healthy economy. Anything above 100 signals strong growth.

Economists closely monitor confidence because consumer spending accounts for about 70 percent of U.S. economic activity. Consumer sentiment — fueled by signs the economy is stabilizing — has recovered a bit since hitting a record-low of 25.3 in February.

Many analysts expect the economy to grow 2-3 percent in the current July-September quarter, spurred by a more stable housing market and the Cash for Clunkers program, which has boosted auto sales.

But economists worry that without healthier consumer spending, the recovery may weaken next year…

“More than expected”?

The hell you say!

This article was posted by Steve on Tuesday, August 25th, 2009. Comments are currently closed.

5 Responses to “Consumer Sentiment Up Unexpectedly”

  1. Liberals Demise says:

    I’m not from Missouri but “SHOW ME!!!!”

    Call me a cynic!

  2. proreason says:

    The Stock Market has rallied and is helping consumer confidence. The rally is at least partly due to the massive layoffs…i.e., lower costs help profits. In addition, there is the expectation that recessions have always come to an end, and then all the money that has been taken from us and handed to the corrupt bankers.

    Wait till the market fully digests the Moron’s agenda. Remember, Wall Street was sucked in by the Con Man along with everyone else. If the Fascist is indeed successful in changing the economy, all past rules are out the window. I don’t believe a word he says, but is there a single thing he has DONE that is pro-competition? I’m not counting the payola to his criminal co-conspirators in the Unions and Goldman Sachs.

    There were numerous sucker rallies during the Great Depression. Hope springs eternal in the investor’s heart.

    If the Market does continue to rise, then we will know that investors have concluded that the Moron’s agenda will fail, and that capitalism will rise again.

    It’s all too dangerous for my taste until the criminal cabal is in jail or cowering in disgrace.

  3. MinnesotaRush says:

    Boy! Just makes me want to run out and spend like a madman, ‘ay.

    Get some cash for my clunker and fridge .. woo hoo!!!!


  4. Chuckk says:

    Who are these “experts?” And why are they always surprised whenever a statistic is released. I suspect the “experts” are really a a bunch of monkeys with a dart board.

  5. proreason says:

    hmmm. Some may recall proreason’s rants about 20% unemployment. Well read this:


    “…John Williams, an economist who examines government statistics at shadowstats.com….says that when he takes into consideration people who haven’t looked for work in more than a year because they can’t find jobs, the real unemployment rate today goes all the way up to 20.6 percent by his calculations. “It won’t take much to get it to the worst since the Great Depression,” he says.”

    And who thinks there will be a quick turnaround. Just the other day, the OMB (Obamy’s economy propaganda division) confessed that 2.3 million more people will lose jobs in 2010 (which presumably doesn’t include the last 5 months of 2009.

    So, I have to apologize for understating the problem. Even faced with the fascist coup, it’s my nature to be a sunny optimist. (Joking aside, a major part of my job for decades has been to estimate efforts, and I know from a long history that my estimates are agressive on the optimistic side by about 20%. I never minded it because estimating aggressively has a business benefit, since it incentives people to work hard.)

    And while we are on the topic, I should remind the reader of my other fatalistic prediction….”if ObamaScare passes, millions of Americans will die because of it.” Since I haven’t yet said “tens of millions”, that one is probably optimistic as well.

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