Lynn Franco
Lynn Franco
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Consumers' confidence has been bolstered by the improvement in business and labor market conditions, ... The latest gains are striking. This new boom in confidence should translate into increased consumer spending and stronger economic growth ahead.
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The swift outcome in the Middle East has helped quell consumers' short-term concerns. While an increase of this magnitude occurred after the Persian Gulf War in 1991, this post-war surge differs in that both components of the index posted gains.
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The nine-point drop in consumer confidence over the last two months underscores an anxiety about future economic conditions.
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This degree of pessimism, in conjunction with the anticipation of much higher home heating bills this winter, may take some cheer out of the upcoming holiday season, ... In order to avoid a blue Christmas, retailers will need to lure shoppers with sales and discounts.
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Higher prices are driving more shoppers to the Internet instead of to the mall and changing the way consumers are doing their holiday shopping this year.
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Barring an unforeseen shock, we would expect consumer confidence to continue to hover around current levels, indicating continued economic growth.
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Consumers appear to have less Christmas spirit heading into Thanksgiving this year than last year,
early levels positive
more positive levels by year-end or early 2006.
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As the economic ramifications of Sept. 11 continue to reverberate in the coming weeks and months, and the number of layoffs continues to rise, the economy faces tougher times ahead. While consumers have managed to keep the U.S. out of a recession for several years now, that soon may no longer be the case.
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While the economy has not turned around yet, the worst may well be over. The upturn in confidence is being driven by growing confidence about the business outlook and job prospects. Consumer expectations for the future are now higher than they have been in more than a year.
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Widespread layoffs and rising unemployment do not signal a rebound in confidence anytime soon, ... With the holiday season quickly approaching, there is little positive stimuli on the horizon.
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While nearly 90 percent of consumers say they will not cut back on their buying plans, it's important to note that this figure is very likely to fall as widespread layoffs begin to materialize,
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While overall confidence remains relatively positive, the latest reading reflects growing concerns that U.S. economic growth may be slowing down. And, while the outlook for corporate profits remains optimistic, rising interest rates and oil prices may curb business leaders' projections.
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We've noticed that with the 24-7 electronic-technological boom over the last several years, things have really accelerated. The pace of change, the learning curve on the job -- we're seeing some of that stress spill over and have a negative effect on employee attitudes.