U.S. Economy: Confidence Slides

March 25, 2008

As reported on Bloomberg.com March 25 (Bloomberg) — U.S. consumer confidence fell more than forecast in March as Americans’ outlook for the economy dropped to the lowest level since Richard Nixon was president.

The Conference Board’s confidence index fell to 64.5, a five-year low, from a revised 76.4 in February, the New York- based research group said today. A report from S&P/Case-Shiller showed home prices in January fell by the most on record.

Declining stock and property values have unnerved Americans, heightening concern spending will falter. A drop in spending, which accounts for more than two-thirds of the economy, would deepen what economists say is almost certainly the second recession of the decade. The Dow Jones Industrial Average remained lower after the report, while Treasury notes held gains.

“Consumers are going to pull back pretty sharply,” said Carl Riccadonna, an economist at Deutsche Bank Securities Inc. in New York. “The labor market is starting to deteriorate and income growth is barely keeping pace with inflation. These are all pretty negative omens for what’s to come.”

The Conference Board’s gauge of expectations for the next six months slumped to 47.9, the lowest since December 1973, when the Watergate scandal rocked the Nixon administration and an embargo by a group of Arab oil exporters was in effect, the report showed.

Our Perspective:

The whispering has stopped. People are now communicating their fears about the economy. I stopped at a friends shop the other day and one client told him that this is the worst they have seen the economy in 25 years.

Everyone has been holding their breath with an eye toward summer. We keep pushing the recovery out in hopes that it will work itself out. We all like instant gratification, however we may find this will not be the case.

If you are a business owner, what steps are you taking?

Are you being proactive, looking at your cost?

There is no silver bullet. Baby steps must be taken to review specific cost that will provide savings and increase efficiencies.

Complacency may not be prudent in this case.

Let us know your thoughts?

You may email george@hbsadvantage.com

Hutchinson Business Solutions ……Your CFO on the Go. 

Creating Opportunities Today,…Defining Savings for Tomorrow.

Visit http://www.hutchinsonbusinesssolutions.com/ to learn more about saving opportunities available for your company.

Spread the good news….. share this information with a friend.

2 Responses to “U.S. Economy: Confidence Slides”

  1. Nice writing style. I will come back to read more posts from you.

    Susan Kishner

  2. 🙂

    Good read! Thank you!

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