Consumer Sentiment in U.S. Unexpectedly Falls to One-Year Low, Index Shows

[marmar]

Sept. 17 (Bloomberg) -- Confidence among U.S. consumers unexpectedly fell in September to a one-year low, a sign Americans will be less inclined to ramp up spending.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment dropped to 66.6 following a reading of 68.9 in August, the group said today. Economists forecast the measure would rise to 70, according to the median estimate in a Bloomberg News survey.

Flagging optimism with unemployment close to a 26-year high of 10.1 percent may increase the risk consumers will cut back on their purchases, which account for 70 percent of the economy. Staff reductions at companies such as FedEx Corp. indicate it will take years to recover the 8.4 million jobs lost in the recession.

“Already cautious consumers are even more cautious,” said Jim O’Sullivan, global chief economist at MF Global Ltd. in New York. “Consumer spending has certainly been a weak part of the recovery and there is no sign in these numbers of any sudden change in that.”

Forecasts for the September reading in the Bloomberg survey of 65 economists ranged from 68 to 73. The index, which declined this month to the lowest level since August 2009, averaged 89 in the five years leading up to the recession that began in December 2007. ............(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=arUZuRDNZtyM&pos=1

[dkf]

1. This is why you don't raise taxes in a recession.

Some people freak out at the thought of higher taxes. And if they stop spending because they are fearful we are all affected.

[wuushew]

8. some people or you?

From a technical standpoint the U.S. is NOT in a recession. You need to quantify the "happiness factor" or politicians and citizens alike will never be able to pin down when it will be possible to raise taxes.

Do you ever want taxes raised? I do, I have a civilization that needs maintainence and improvement.

[Dawgs]

2. Fear works!!

FUGOP

[marmar]

3. So people are just imagining that they don't have any extra money to spend?

nt

[emilyg]

5. I don't have a money tree. Do you?

[anarch]

4. how the hell is this "unexpected"?

personally, I'd probably go buy something if I had any money...some of my clothes are barely holding together at this point, and I could also use some food (or does that not count when we're tallying up consumer purchases?). But I don't have any fucking money, so there you go.

[MadHound]

6. There's that word "unexpected" again.

Of course this could be expected. You don't raise prices, lower wages, eliminate jobs and screw up the economy in a major way without expect that consumer sentiment would go down the toilet.

[CrownPrinceBandar]

7. Scientists surprised by the "unexpected" wetness of water....

SHOCKING!!

[Subdivisions]

9. The word UNEXPECTEDLY has become THE standard for economic

news since 2008. Nearly every economic report to come out since then has been characterized as UNEXPECTED. Proving that absolutely no one knows anything about the economy until the numbers get released.

[brentspeak]

10. What a shock. No one could have seen this happening.