Consumer Confidence Pressures Return
Zachary Scheidt submits:
Yesterday, the market dealt a disturbing blow to frustrated bulls who were riding the recent rebound in equities. Before the market opened, futures were a bit weak after a report showed German business sentiment was not as strong as expected. (Remember, Germany is one of the primary countries which is expected to be responsible for bailing out Greece). But while the pre-market futures were relatively tame, the market quickly turned lower after the US consumer confidence numbers were released at 10:00 AM EST.
Economists were surprised to see the confidence index drop to 46 which is the lowest reading since 2009. At issue was the continued absence of employment recovery and a frustratingly lower reading in the “future expectations” category. It seems that while the market has been pricing in a robust recovery, the average American is not quite assured. Since consumer spending is a major part of our economy, weakness in consumer confidence is particularly troubling.
Investing, Long Term Investment, stock market | admin February 24, 2010
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