Confidence among U.S. consumers plunged to a record low in February, signaling spending will slump further as unemployment soars.
The Conference Board’s index declined more than forecast to 25 this month, the lowest level since data began in 1967, from a January reading of 37.4, the New York-based research group said today.
So, the first full month that The Teleprompted One was in office, consumer confidence crashed to its lowest level since records have been kept. Why is this important? Well, consumer confidence is largely psychologically driven. It measures how people FEEL. It is capturing the NOW as well as how people view the FUTURE. Obviously neither Obama nor his policies (or those of the Democrat-ick Congress) have done anything to boost people’s confidence. This is one thing that they can’t lay at the feet of former President Bush nor the Republican Congress which has now been out of office for more than two years.
UPDATE: Apparently it doesn’t help build consumer confidence when the head of the National Economic Council, Lawrence Summers, falls asleep on stage at the president’s “fiscal sustainability summit.”