Consumer Confidence Hits New Low
The Conference Board’s consumer confidence index reached 25 (1985=100) for January. That is a new all-time low for the index.
The Conference Board Consumer Confidence Indexâ„¢, which had decreased moderately in January, declined in February, reaching yet another all-time low. The Index now stands at 25.0 (1985=100), down from 37.4 in January. The Present Situation Index declined to 21.2 from 29.7 last month. The Expectations Index decreased to 27.5 from 42.5 in January.
In other words, consumers don’t see the economy getting better for at least another six months. This fits with what Fed Chairmen Ben Bernanke told the Senate Banking Committee.
In his semiannual report to the Senate Banking Committee, Bernanke predicts the economy is likely to keep contracting in the first six months of 2009. But he also says “there is a reasonable prospect” the recession will end this year. He warns that a recovery will require getting credit and financial markets to operate normally.
Lets hope this is the case.