|
Consumer confidence lags
|
 |
February 5, 2001: 6:14 a.m. ET
Trend continues toward the timid with yet another economic red flag
|
NEW YORK (CNNfn) - Another red flag signifying a cooling economy was raised Monday, as consumer confidence continued its downward trend in January.
According to the University of Michigan index of consumer sentiment, confidence fell in January on the heels of a sharp plunge in December.
The Index of Consumer Sentiment fell to 94.7 from 98.4 in December and 107.6 in November.
"Consumers have become increasingly pessimistic about their future income and job prospects, and as a result will continue to slow the pace of their spending during months ahead," said Richard Curtin, director of the Surveys of Consumers at the University of Michigan, in a statement.
In addition, the Index of Consumer Expectations, a part of the Index of Leading Economic Indicators, also dropped to 86.4 in January, compared with 90.7 in December. It is down 15.2 index points from November, the third-largest two-month drop ever.
On Jan. 30, the Conference Board reported consumer confidence in January plunged to its lowest level in four years. And on Feb. 2 the Labor Dept. announced edged up to 4.2 percent, its highest level in 16 months.
In addition to the Fed's rate cut on Jan. 31, the White House has been trumpeting President Bush's proposed $1.6 trillion tax-cut plan as a way as boosting consumer confidence. 
|
|
|
|
|
 |
|
