By ANNE D'INNOCENZIO
AP Retail Writer
(AP:NEW YORK) Americans can't seem to shake their uneasy feeling about the economy.
Consumer confidence fell in June for the fourth straight month in the row as lingering worries about the economy outweighed relief at the gas pump.
The Conference Board says Tuesday that its Consumer Confidence Index is now at 62, down from 64.4 in May and the 63.2 analysts were expecting. The index remains well below the 90 reading that indicates a healthy economy _ a level it hasn't been near since the recession began in December 2007. But it's far from the all-time low of 25.3 reached in February 2009.
The indicator is widely watched because consumer spending, including major items like health care, accounts for 70 percent of U.S. economic activity. Americans are still worried about slow hiring, their home values, the stock market and a worsening European economy that some fear will hurt the U.S.
"Consumers were somewhat more positive about current conditions, but slightly more pessimistic about the short-term outlook," said Lynn Franco, director of Economic Indicators at The Conference Board in a statement. "If this trend continues, spending may be restrained in the short-term."
Worries about job and income growth was a big concern in the survey, which is based on a poll conducted from June 1 through June 14 with about 500 randomly selected people nationwide.
Those stating jobs are "hard to get" increased to 41.5 percent from 40.9 percent. Those expecting more jobs in the months ahead declined to 14.1 percent from 15.4 percent. Meanwhile, the proportion of consumers expecting an increase in their incomes declined to 14.8 percent from 15.7 percent.
Consumers' dwindling confidence in job growth reflect that after solid gains during the first three months of the year, there's been a sharp slowdown in hiring in April and May. Meanwhile, a measure of the number of people applying for unemployment benefits over the past month has reached a six month high, the government said last week. That increase suggests that layoffs are rising and June could be another lackluster month for hiring. The government is slated to release June data next week.
Still, Americans have some reasons to be optimistic. A widely watched home price index, released Tuesday, offered some hope for the housing market. Home prices rose in nearly all major U.S. cities in April, according to The Standard & Poor's/Case-Shiller home price index. That's the second straight month that prices have risen in a majority of U.S. cities.
Shoppers are also getting some relief at the gas pump. Gas prices have falling from their peak in early April. Gasoline prices fell 4 cents over the weekend to a national average of $3.41 per gallon, according to auto club AAA, Wright Express and the Oil Price Information Service. And experts say gas could fall another 11 cents by July 4, next week
Despite the positive signs, Americans appear to be hoarding cash, economists say. Several companies, from restaurants to home goods sellers, have said customers are pulling back unless they are lured in by big discounts.
Bed Bath and Beyond last week forecast lower second-quarter earnings than analysts expected and said it needed to use more coupons to get people to spend. At furniture chain Ethan Allen Inc., executives said customer traffic is slowing and shoppers are taking more time to make purchasing decisions. And Darden Restaurants Inc., which operates Olive Garden and Red Lobster restaurants, expects earnings short of Wall Street expectations, and it said customers were turned off by the $1 increase for Red Lobster's dish "Festival of Shrimp."
What are today's top 50 stocks? This free list will share the big market movers on a daily basis to help you find trading opportunities.
HO...HUM!... So, what else is new? What is happening with the Economy (and the Financial System} has been predicted by Non-Establishment Economists (such as: William Bonner, Addison Wiggin, Eric Fry, Peter Fitch and Richard Doughty, among a very few others} and repeated for several years now. They warned that trying to PREVENT a recession/depression by pumping printed money into the economy and/or incresing DEBT, instead of allowing the Natural Economic Forces to take effect and then RECOVER, was a useless, wasteful (trillions of dollars) and only TEMPORARY postponement of the INEVITABLE. They also warned that we were following the same steps that placed Japan on a path to a 10-20 year recession. We are NOT Japan! We are Americans! was a common retort. I guess that it was implied that, since we are Americans, we can distort, bend or ignore the Basic Laws of Economics! Greenspan and Bernanke should be made to attend one year at the Von Misses Austrian School of Economics to learn what the consequences are. I heard Greenspan mutter during one of his "Testimony" Sessions: "...I can hardly wait to print my way out of a Kondrattief Winter Cycle!" Well, he got his wish, Bernanke followed and HERE WE ARE. It looks like it is going to be A VERY LONG WINTER!!
These readings, unfortunately, should come as no surprise. I have been telling listeners for over 2 years that "There is no JOBS plan or plan for recovery from Obama. His dead Kenyan Daddy (which fact alone makes him Constitutionally ineligible to serve as Chief Executive Screw Up) in his dreams (that Barack has taken upon himself to realize) wanted to bring The United States to its knees financially and end its prominence and influence globally. We haven't come LOW ENOUGH yet to realize fully that dream. To anyone who differs in their analysis consider: WHO ELSE but someone who wishes to bring us down, would appoint Jeffrey Immelt (CEO GE) as Jobs Czar after Jeffrey's application for the position listed closing a 100 yr old incandescent bulb plant and laying off a ton of people and sending the jobs to communist China AND then closing Wakesha (sp?) WI's biggest employer, the GE X-ray division plant, throwing over 700 more out of work and sending all of those jobs to Communist China along with $ 2 BILLION to train Chinese and build plants THERE (while paying no Federal Corporate Taxes HERE on over $ 5.2 Billion in earnings last year. Then, to help all the "greenies" look good (or at least not so BAD) he commits GE money to purchase HALF of two years production of that great new "Edsel" of cars....the Chevy Volt they can't give away. I've called on GE Shareholders to call a meeting, FIRE THE ENTIRE BOARD OF DIRECTORS and vote in a responsible Board that then FIRES IMMELT and put someone in charge who believes in AMERICA, American workers and jobs, who then reverses these decisions, brings jobs home, and cancels the waste of shareholder money on those Volts. I suggest shifting the voltage from those 35 mile "range" cars to a cattle-prod to use on Immelt and Obama. A far better use of energy in my book. Finally, if you check the Consumer Confidence Numbers historically, you will note that it was literally at its peak right up until Obama announced his candidacy for President. The economy was also roaring at a GDP annual growth rate (unsustainable) of 5.2-5.3% and UNemployment was at its historic bottom of 4.5% with many many months of continued job growth....all under that "stupid, ignorant, hated George W." So, the only way to engineer a take over of The White House by Dems was to destroy any appearance of prosperity or success under a Republican President, SO: I noted at the time something big was in the works... as our Leftist Media pulled a Josef Goebbels (Hitler's Minister of Propaganda) and began immediately "selling the big lie" (a concept perfected, if not invented by Goebbels). So, while the economy roared, the media began a coordinated campaign to destroy Consumer Confidence by publishing false, paranoid, negative stories that the sky was falling when everything, or most things, were actually continuing to do quite well. They knew, as reported here, that the economy is 70% driven by consumer spending. So: if you can destroy consumer confidence by a steady diet of gloom and doom putting fear into them about job security, income, etc, they will respond by pulling back on their spending and, in so doing, induce layoffs which, in turn exacerbate more dramatic cuts in consumer spending that, in turn, leads to more layoffs, etc. Thus, the lying leftist media reports constituted, as planned, "Self-fulfilling prophecy" inducing the ultimate Recession. I'm not for lying but, it's kind of a shame we can't force that same media to lie in the OTHER direction, and put on a "Happy Face" and tell us that all is well and we have full employment again, etc. It seems a shame that we can't make those largely responsible pay some kind of price for the pain they've inflicted on this nation and countless millions of its good, and largely unsuspecting people. One final note: Obama proves again and again that he cares not for Americans. He instituted a program many months ago where he deliberately IMPORTS FOREIGN WORKERS at the rate of 125,000/month to take American jobs, and is trying to increase that. He just "forgave" (back end amnestry) a million younger Mexicans and plans to expedite their getting jobs. Now, WHOSE JOBS would those be....if not American? Republican President Herbert Hoover threw out 5 million + Mexicans at the early onset of The Great Depression, to make room for Americans to get work. After WWII, DEMOCRAT President Truman threw out even more Mexicans...thanked them for their help during the war, asked American women, after thanking them for their considerable labor in building our war machines, to go back home, marry,, and have babies. Republican President Eisenhower, (greatly respected and voted for by tons of Democrats) sent 12 million Mexicans home to make jobs for returning Korean War Vets...and ALL OF THIS WAS DONE Before the Interstate Highways were built under Eisenhower. But our Government says it would take 5 years and hundreds of Billions to get 11 million Mexicans to leave. I don't think so. Put me in charge. Just a suggestion.
We wouldn't have to worry about such things as "consumer confidence" if we had not exported our industrial base to China and other formerly non-industrial nations. Now who is "non-industrial"? How many manufacturing/industrial stocks make up the Dow Jones "Industrial" Average?
Darned few, unless Disney is manufacturing all the stuff it sells at Disney World. Let me check. Just a second. .. ... ... Nope. Sorry. Everything's made in CHINA.....you know that "place" where the dissidents who had been imprisoned for years when released in the mid-80s, warned and begged us NOT to do business with. They told us that doing business with them IN THE HOPE THAT DOING SO WOULD ENCOURAGE THEM TO IMPROVE THEIR SORDID RECORD ON HUMAN RIGHTS was NOT the approach. Doing so would "reward bad behavior". We did and it did. They didn't change. I put this in the same category as women wondering why the guy they shack up with won't marry them. Old premise: "Why buy a cow when you get milk through the fence?" No incentive. I warned us on Christian Radio in 1985 when we were barely starting this insanity. And sadly, this crosses party lines as both Republican and Democrat CEOs of businesses are shipping those jobs out. There is a fairly simple solution, but it takes someone with the GUTS to put America first and that requires Americans to VOTE like they talk and only elect Congressmen and Senators, and Presidents who will. And, I haven't seen THAT happen. Even many Christians talk one way on Sunday and vote for Satan's personal Representatives on Tuesday. Disgusting. We are in serious trouble.