Business News

Consumer confidence down, near record low: ABC

SOURCE:

Reuters

2008-08-05 16:15:52

Consumer confidence down, near record low: ABC

NEW YORK (Reuters) – American consumers’ confidence fell in

the latest week to within 2 points of its record low and is on

pace for its second-worst year in 22 years of measurements, a

survey showed on Tuesday.

The ABC News Consumer Comfort Index fell to -49 in the week

to August 3 from -47 in the previous week. Its all-time low,

reached in May, is -51 and its historical average -10.

The index components were mixed, with positive views on

personal finances down 1 percentage point to 48 percent and

those on the buying climate down 2 percentage points to 19

percent. Views on the national economy were unchanged at a grim

10 percent.

Confidence measures are generally viewed as a barometer of

consumer spending, which accounts for two-thirds of the U.S.

economy. However, economists note that consumers do not always

act in accordance with their statements to surveys.

The ABC News consumer confidence survey was based on a

sample of about 1,000 interviews conducted in the four weeks

ending August 3 and has a margin of error of plus or minus 3

percentage points.

(Reporting by Rodrigo Campos)

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Blake Masterson

Freelance Writer, Journalist and Father of 5

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