US Consumers’ Trust Gets Weak
This condition is expected to temper optimism about the U.S. economic recovery because the data is conflicting with other signs that show the economic recovery may be faster. The reason, a separate report last week showed consumer sentiment in December was at its highest level since June this year. According to Conference Board data released Tuesday (28/12/2010), U.S. consumer confidence index in December was down to 52.5 compared with 54.3 the previous month. The index is lower than analyst forecasts in the poll predicted by Reuters, 56 points.
“U.S. consumers are still worried about high unemployment, stagnant housing market, and overall growth slightly. They’ve seen so far, “said Kathy Lien, Director of Research GFT in New York. Consumer assessment of the labor market worsened last month after the initial government data showed the unemployment rate November surged to the highest level for seven months, namely 9.8 percent. In another report, the survey index of sentiment level of difficulty getting a job in the U.S. increased to 46.8 percent in December from 46.3 percent the previous month index. And ease of getting the job fell to 3.9 percent from 4.3 percent previously.
Despite the overall decline in consumer confidence, a senior economist at Barclays Capital in New York, Troy Davig optimistic about the resurrection of each individual with an income of more than USD50.000.Hal is based on the enactment of new tax package by the government. Ratification of the new tax system for U.S. citizens are led to optimism in the economic recovery. Economists even predicted an Obama administration policy that would lift growth to one percent next year. The economy is also forecast to get support in the financial sector after the U.S. central bank poured $ 600 billion fund to buy government bonds.
