Consumer Confidence Falls

[Phil Nilsson]

U.S. Consumer Confidence Falls on Expensive Gasoline

August 26, 2005

Record gasoline prices caused U.S. consumer confidence to drop in August for the first time in three months, the University of Michigan said Friday.

The university's index of consumer confidence is an important gauge for how Americans see their economy. It dropped to 89.1 from 96.5 in July.

Experts said record gasoline prices are the cause for declining consumer confidence, and they could threaten economic growth by changing the spending habits of Americans.

The index dropped more than expected and more than a preliminary estimate of the survey had indicated.

While the U.S. economy has so far managed to deal with high oil prices and continue solid growth, there is a threat that high energy costs could slow it significantly.

[Shoal]

I cant imagine why the consumer confidence is so down. shoal

[MBDiagMan]

It is down because there are many people that will not or are incapable of looking at the real picture. Many people can only think about the discomfort when they write a check for a tank of fuel.

Thanks to the news media, many people don't know that we are in the midst of one of the fastest growing economies in US history. If they would look at the big picture they would see that rising fuel costs is a very small part of the overall scheme.

Additionally, they are seeing it all at once. All other goods; cars, real estate, etc, have tripled in price since 1981 while fuel cost has remained the same. It is catching up to everything else except doing it in one giant leap. I went through the same thing in 1973 and remember the emotion. As a young, inexperienced person I felt the same way at that time that many people do now because I did not understand economics as I do now.

My $0.02,
Doc

[MASTERMOWER]

Well said Doc.

[Phil Nilsson]

Take advantage of an opportunity ... if ... and of course it's a big IF ... the economy worsens ... lowballers will drop out first, and sell off their equipment which you in turn will be able to purchase perhaps as low as 10% to 30% on the dollar.

[ahlgrenlandscaping]

I'm already seeing that Phil lots of new/newer mowers and all sorts of equipment for sale in the papers. I don't see the people pulling trailers with jeeps/station wagons around town anymore and phone calls are coming in 6-10 a day.

[MakingMoney]

Take advantage of an opportunity ... if ... and of course it's a big IF ... the economy worsens ... lowballers will drop out first, and sell off their equipment which you in turn will be able to purchase perhaps as low as 10% to 30% on the dollar.

You got any equipment for sale.