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Reuters Poll Proves US Is In A Recession

From a determined Reuters:

Consumers, inflation weaken as slowdown drags on

By Burton Frierson

NEW YORK (Reuters) – Consumer confidence fell further into recessionary territory in March, hitting a 16-year low, even as other data showed incomes rose and inflation dipped in February, which should support the Fed’s efforts to bolster the economy.

The Reuters/University of Michigan Surveys of Consumers said its final index of confidence fell to 69.5 in March — its lowest since February 1992, when it was at 68.8 — from the previous month’s reading of 70.8.

Consumers were apparently unimpressed by February’s 0.5 percent rise in personal incomes, reported by the Commerce Department. That exceeded forecasts of a 0.3 percent gain made by analysts polled before the release.

However, the best news from the U.S. personal income report may have been the benign reading on underlying inflation, which was 2 percent. This matched the prior month’s gain, which was downwardly revised from 2.2 percent.

This latest reading on the "core" personal consumption expenditure price index is also just within the Federal Reserve’s perceived comfort zone

The inflation reading provided a boost to Wall Street with the Dow Jones industrial average rising 0.4 percent. It also helped lift bond prices but pushed the dollar to near a record low around $1.58 per euro…

The Commerce Department’s report also showed signs of economic weakness, with personal spending increasing just 0.1 percent in February. This was in line with expectations but is down from a 0.4 percent gain in January.

This weakness was consistent with the Reuters/University of Michigan Surveys of Consumers report, which said "it is now nearly unanimous among consumers that the economy has already entered a recession."

Its index of consumer expectations fell to 60.1, its lowest since January 1992, when it was at 59.1. In February this year it was at 62.4.

The report showed the final reading on one-year inflation expectations jumped to 4.3 percent in March from 3.6 percent in February.

That was the highest final reading since October 2005, when gasoline prices were soaring in the wake of Hurricane Katrina, but was down from the preliminary March reading of 4.5 percent.

Excluding the post-Katrina period, the March reading would be the highest since 1990.

The index of consumers’ economic outlook for the next 12 months fell to 46 — the lowest since a similar reading in January 1991 — from 54 in February.

"Consumer confidence slipped due to growing concerns about weakening prospects for the economy as well as anticipated increases in unemployment and inflation during the year ahead," the Reuters/University of Michigan statement said…

What a coincidence.

16 years ago was also an election year. In fact, it was the year that ended up giving us Mr. Clinton as our President.

And as he and his lickspittle slaveys in the media constantly told us, "it’s the economy, stupid." Without mentioning that in fact the economy had rebounded long before the November elections.

This weakness was consistent with the Reuters/University of Michigan Surveys of Consumers report, which said "it is now nearly unanimous among consumers that the economy has already entered a recession."

Gee, where did these consumers ever get that idea? Could it be from the endlessly disinformation from the news media?

But alas, the Democrats and our watchdog media (but I repeat myself) always repeat whatever lie has worked for them before.

This article was posted by Steve on Friday, March 28th, 2008. Comments are currently closed.

30 Responses to “Reuters Poll Proves US Is In A Recession”

  1. payday_loan_advocate says:

    Like most Americans that constitute the ever-growing class of “disillusioned” voters, I watched the recent “town hall-style” debate between Barack Obama and John McCain. As expected, my perspective of politics and its participants remained the same: no matter how many direct questions you ask a politician, regardless of party affiliation, the answers you receive are nothing more than generalized sound bites. The New York Times described the debate as “ninety minutes of forced cordiality,” and I certainly agree. The Boston Globe reported that although the discussion was “mercifully free” of personal attacks, the discussion was also free of much of the tension that generates compelling television. McCain reiterated the value of his experience, his “stay the course” stance on Iraq, and his oil drilling policies. Obama condemned the Republican policies that he believes have led the American economy into its current recession. Based on the debate performances, we really have no concept of how either candidate would work to avoid a pending economic catastrophe. A realistic, well-thought out economic plan is what America needs. Obama’s stance on “predatory lending” – effectively sanctioning payday advance lenders – is not a legitimate solution to the real economic problems we face.

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  2. BillK says:

    FWIW, two consecutive quarters of negative GDP.

    We have not yet had one.

    Except for what the press has to say, it is now numerically impossible for the US to go into recession during Bush’s tenure, let alone before the election.

    Not like facts ever influence the Press’ coverage of anything.

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