Consumer Confidence Plummets in September

[steven]

By ANNE D'INNOCENZIO
AP Business Writer

NEW YORK (AP) -- Consumer confidence plummeted almost 19 points in September, its biggest drop in 15 years, as Americans worried about the economic fallout of Hurricane Katrina and rising gasoline prices.

The Conference Board said its Consumer Confidence Index, compiled from a survey of U.S. households, dropped 18.9 points to 86.6, from a revised reading of 105.5.

That marked the biggest fall since October 1990 when the index fell 23 points to 62.6 in the wake of the recession. The September reading was also the lowest level since October 2003, when it registered 81.7.

Analysts had expected the September reading to be 98.

http://hosted.ap.org/dynamic/stories/C/CONSUMER_CONFIDENCE?SITE=NYBUE&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2005-09-27-10-33-16

[buffknut]

and your point? Did you seriously think consumers would be giddy following the hike in gas prices? Do you seriously think when analysts predicted a 98, that number included the most damaging natural disaster in US history?

But along a similar vein. Do you think the Fed should have raised rates & what is your opinion of the Fed? I think they are out of touch with reality and have been since Greenspan has been in charge.

What's really amazing is just how resilient this economy has become. Say what you want about Bush etal, but the fact is that this economy still is moving ahead despite 9/11 and despite Katrina. I agree with those who have some complaints, particularly about excessive spending (at all levels, not just Fed by the way). I don't think we are doing as well as we can & part of the blame is Republicans (but you have to admit its Dems too). But we have been resilient and remain in much better economic shape than any European country by far.

[steven]

Because of Katrina, gas prices going thru the roof, and everyone worried about the drain all the displaced people will have on the economy, consumer confidence being low is kinda of a no brainer. I agree with you entirely.

Just because I post it doesn't mean I personally think it holds any great significance nor does it mean I necessarily agree with it. Its just news worthy business/economic stuff that is kind of my functions on the board to post.

I think confidence will rise just before christmas when NO is back together and prices go down a little at the pump. A lot depends on how fast and hard winter hits as the heaing costs will be extremly high this yr. Everyone is already bracing for that so a light winter could make for better consumer confidence. I think in most peoples minds they are already paying those high heating bills so a medium or harsh winter will have little effect on confidence.