It was only a few short weeks ago that the media was reporting a new 6 year high in consumer confidence. We wanted to buy tacos. And jetskis. And footballs.
No longer. Now we are depressed. We’ve lost our confidence, consumers. Bloomberg reports that consumer confidence took its biggest hit since Hurricane Katrina made us all feel vulnerable and sad. From Bloomberg:
The New York-based Conference Board’s index of confidence declined to 105 from 111.9 in July. Economists had expected a reading of 104, according to a Bloomberg survey. Earlier today, another report showed home prices in the U.S. dropped by a record amount in the second quarter.
The housing recession is making it harder for Americans to tap home equity to finance the spending that accounts for 70 percent of the economy. A slowdown in hiring and slimmer pay raises may further weaken consumer sentiment and buying power.
There. They’ve said it. “Housing recession.” Everybody panic.