Consumer Confidence Unexpectedly Falls on Jobs Outlook

[mahatmakanejeeves]

Source: Bloomberg

By Timothy R. Homan - Dec 28, 2010 10:38 AM ET

Confidence among U.S. consumers unexpectedly fell in December, restrained by concern jobs will remain scarce in 2011.

The Conference Board’s confidence index decreased to 52.5, lower than the most pessimistic forecast of economists surveyed by Bloomberg News and down from a revised 54.3 in November, figures from the New York-based research group showed today. The share of Americans saying jobs were hard to get climbed to a 10-month high.

The loss of confidence is at odds with a report from the University of Michigan that showed sentiment improved to a six- month high in December, and data showing the biggest gain in holiday spending in five years. Federal Reserve policy makers have reiterated they will continue to pump money into financial markets in a bid to keep interest rates low, boost growth and cut unemployment.
....

Sales Rise

Retailers’ 2010 holiday sales jumped 5.5 percent for the best performance in five years, said MasterCard Advisors’ SpendingPulse, which measures retail sales by all payment forms. That compared with a 4.1 percent gain a year earlier. The numbers include Internet sales and exclude automobile purchases.

Read more: http://www.bloomberg.com/news/2010-12-28/consumer-confidence-in-u-s-unexpectedly-falls-on-outlook-for-job-market.html

[Taverner]

1. Simple - stocks go down because there might be hiring going on

Hiring costs money, so people who want a quick fix dump their stocks, anticipating possible losses due to employee costs.

Seriously, I keep saying this, but Capitalism and the Stock Market are no way to judge the health of a country. It's like basing the economy on the cost of a BJ on the street.

[Statistical]

2. What does stocks have to do with the article?

Also you are wrong on employment. Most companies are running very lean. Further growth in productivity is unlikely. The only way companies can expand bottom line profits is top line growth (more sales & revenue).

For the last 3 jobs reports when they came out worse than expected the market reacted negatively (the exact opposite of your claim).

You can only cut so much fat before you are left with the bone. Investors aren't stupid. They realize that further profit growth by cost cutting (including payroll) is no longer possible. If it was companies WOULD HAVE ALREADY DONE IT, they have had two years.

[Newest Reality]

3. Unexpectedly?

More news from the shocked economist society? It just shows how those injections of optimistic propaganda don't hold-up much against what is actually going on.

[dixiegrrrrl]

5. Really.

Translation:
Consumers wising up to what is going on, can't be fooled as easily anymore.

[xchrom]

4. recommend