Tag Archives: Richard Curtin

Business, Finance, Occupation & Industry

Report Shows Americans Gloomy About the Economy

Leave a comment

By Reuters

Aston Martin Hydrogen Rapide S Race Car

Filed under: , , , ,

Gene J. Puskar/AP

NEW YORK — U.S. consumer sentiment tumbled to a nine-month low in April, with Americans especially gloomy about the long-term health of the economy, a survey released on Friday showed.

The Thomson Reuters/University of Michigan’s preliminary reading on the overall index of consumer sentiment fell to 72.3 in April, a level last seen in July, 2012, and below economists’ forecasts of 78.5. The index stood at 78.6 last month.

The barometer of current economic conditions fell to 84.8 this month from 90.7, while the gauge of consumer expectations hit 64.2, down from 70.8.

Americans’ long-term outlook was even more gloomy, with many anticipating a higher unemployment rate and lower after-tax income in the year ahead, Richard Curtin, the survey’s director, said in a statement.

But more immediate plans for buying homes and vehicles were positive, Curtin said, while rising home and stock values were expected to support spending this year.

Economists have worried that higher payroll taxes and government belt-tightening could cause consumers to keep a closer watch on their wallets as the year goes on.

Consumer pessimism this month did suppress inflation expectations, with the one-year outlook dipping to 3 percent, the lowest in the past year, from 3.2 percent in March. The survey’s five-to-10-year inflation outlook held at 2.8 percent.

The Federal Reserve has repeatedly pointed to tame inflation expectations and a still fragile labor market as reason to press ahead with its aggressive monetary stimulus.

%Gallery-181373%

Permalink | Email this | Linking Blogs | Comments

From: http://www.dailyfinance.com/2013/04/12/report-shows-americans-gloomy-about-economy/

Business, Finance, Occupation & Industry

Consumers Sentiment Improves Along with Job Market

Leave a comment

By Reuters

consumer sentiment improves job market economy

Filed under: , , , ,

Mark Lennihan/AP Job-seeker Susan Paul shakes hands with a recruiter at a job fair in New York on March 14. A survey released Friday showed consumers are more upbeat about the economy, in part because of an improving labor market.

NEW YORK — U.S. consumer sentiment rose in March from February, as Americans discounted the effects of government budget cuts and instead saw continued healing in the labor market, a survey released on Friday showed.

The Thomson Reuters/University of Michigan’s final reading on the overall index of consumer sentiment came in at 78.6, up from 77.6 the month before.

The final March figure was up sharply from the preliminary reading of 71.8, and above the median forecast of 72.5 among economists polled by Reuters. It was also the highest reading since November.

Sponsored Linksadsonar_placementId=1505951;adsonar_pid=1990767;adsonar_ps=-1;adsonar_zw=242;adsonar_zh=252;adsonar_jv=’ads.tw.adsonar.com’;

Consumer confidence jumped sharply in the second half of the month, erasing the decline of the first half of March, survey director Richard Curtin said in a statement.

That surge came from two factors, he said.

“Consumers have discounted the administration’s warning that economic catastrophe would follow the reductions in federal spending, and consumers have renewed their expectation that gains in employment will accelerate through the rest of 2013.”

The survey’s barometer of current economic conditions rose to 90.7 from 89.0 the previous month and above a forecast of 87.8.

The survey’s gauge of consumer expectations rose to 70.8 from February’s 70.2 and an expected 62.

The survey’s one-year inflation expectation fell to 3.2 percent from 3.3 percent, while the survey’s 5-to-10-year inflation outlook was at 2.8 percent from 3.0 percent.

Reporting By Luciana Lopez; Editing by Chizu Nomiyama.

%Gallery-181373%

Permalink | Email this | Linking Blogs | Comments

…read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

US consumers' outlook improved in late January

Leave a comment

A survey released Friday shows Americans’ outlook for the economy perked up in late January, suggesting an improving job market may blunt the impact of higher taxes.

The University of Michigan’s final January survey of consumer sentiment rose to 73.8. That’s up from a preliminary reading of 71.3, released on Jan. 18. And it’s slightly better than December’s reading of 72.9.

The preliminary survey reflected consumers’ initial reaction to an increase in Social Security taxes, which took effect in early January. A separate survey from the Conference Board also showed consumer confidence fell in January because of the tax increase.

On Friday, the government said the economy added 157,000 jobs in January and hiring was stronger at the end of 2012 than previously thought.

The final Michigan survey, which included data collected after Jan. 18, showed consumers were more optimistic about their prospects for the next six months than they were in December. Still, their mood about current conditions declined from December.

Richard Curtin, chief economist for the survey, said the tax increase was the main reason consumers, particularly those from lower-income households, felt less confident about current conditions.

Social Security taxes rose after a 2 percent cut, in place for two years, expired Jan. 1. That means a person earning $50,000 a year will have about $1,000 less to spend in 2013. A household with two high-paid workers will have up to $4,500 less.

Economists said they were looking for modest improvements in consumer confidence in coming months as long as job growth keeps improving.

“After getting slammed in December, consumer confidence is starting to stabilize,” said Chris G. Christopher, senior economist at Global Insight.

Source: FULL ARTICLE at Fox US News