Consumer confidence, as measured by both the Conference Board and the University of Michigan, went into a tailspin in August – thanks in large part to the divisive debt ceiling debate, the S&P downgrade, the faltering stock market and the deepening gloom emanating from Europe.
With growing uncertainty and weak job and income growth, retail sales out this morning had been highly anticipated since it would provide a concrete gauge on the public’s mood.
Unfortunately, the best consumers could muster was a flat reading in August. Excluding autos, sales managed a meager 0.1% rise.
Further, June and July were revised lower.
Last month’s free-fall in consumer confidence, along with the factors mentioned above, very likely accounted for the weak showing at the nation’s malls.
If there is a silver lining, sales did not mirror the steep drop in confidence, and it appears the economy continues to expand at a very tepid pace.
But the anxiety many of us feel is being reflected in the latest numbers offered up by the government.
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