U.S. consumers are taking a step away from crisis

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It’s a matter of confidence
Consumer Confidence in the U.S. rose in February for the second month running as a conservative indication that U.S. consumers are regaining confidence in the future. The final figures for the Michigan consumer confidence index landed at 57.3 in February against 56.8 expected.

In growth
U.S. private consumption accounts for approx. 70 per cent. growth and is therefore a crucial factor in relation to a reversal of the economic cycle. The slightly rising consumer confidence reinforces the belief that later this year, a reversal in growth, writes Bloomberg News.

Expert opinions
“Consumer confidence is in a stabilizing phase after a massive dive. We are still far from a turnaround, but we are in this game ready to see big drop. It is a first step,” says Stephen Galagher, chief economist at Societe Generale in New York, to Bloomberg.

Be aware
Uncertainty remains very solid, and the rapidly rising unemployment in the U.S. is a factor which could send consumer confidence down again. We are by no means over the crisis, and there is in my opinion still bad times to come

Written by admin

marts 27th, 2009 at 8:21 pm

Posted in economics

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