US consumers worried about economy

Consumer confidence in America has sunk to its lowest point since the oil crisis in 1973 and, along with a weaker job market and falling house prices, is fueling concerns that the economy is sliding into recession. While the survey of 2500 households by the Conference Board has a patchy track record as an indicator, Bernard Baumohl of research firm Economic Outlook group, said that it does signal a great deal of anxiety and concern amongst consumers. “Consumer-led recessions are among the most difficult to turn around in an economy,” he said. “Particularly this one, because of the fact that many households feel a lot poorer than they did a year ago, primarily because of the collapse in the value of their homes.” The US dollar fell following the release of the survey, pushing the Australian dollar up to US91.48 cents at the close of trade.

Source: The Age