U.S. consumer sentiment took a huge hit in October

October 25, 2013

On the heels of the 16-day government shutdown, US consumer sentiment took a huge hit in October. From Reuters:

The Thomson Reuters/University of Michigan’s final reading on the overall index on consumer sentiment fell to 73.2 in October from 77.5 in September and was the lowest final reading since December 2012.

The October figure was lower than both the 75.0 forecast by economists in a Reuters poll and the mid-month preliminary reading of 75.2.

Here’s what consumer sentiment has looked like over the last six years:

On a related note, Sober Look noted last week that the Gallup economic confidence index was at its lowest since 2011:

Gallup reported earlier this month that the first week in October was the largest drop in consumer confidence since the week Lehman Brothers collapsed in September 2008. Grim stuff.

Comments

This is a confidence in leadership and lack of leadership problem. You voted…again…

Posted by Crash866 | Report as abusive
 

We have very big problem here. The public expects a functioning democracy (dictatorship of the majority or the consensuses). That each view is made to lay low until it build a consensuses (majority). There is sections 4 and 5 of the Fourteenth Amendment that says debts will be paid which existing laws and programs will be funded until repeal. But we need more rules in congress to insure that deal making and blockage are not lawful there. Also we need such rules going speedily to courts the violation of section 4 and 5 sis not get to the courts by either the Attorney General or groups congressmen.

Deal making and blockage to have a minority view direct action is not democratic and slows government. All organizations need its parts to move in the direction of it government’s directed course of action or it is dysfunctional. In case of the US government the laws and programs that are active are that course of action.

The public is also getting to know besides the above appointing people without technical knowledge will also be dysfunctional. Note the people put in charge of Obama Care did not have the background to run and set up computer systems. Just prior to WWII we had a defense system run by people likewise unsuitable. Before the first gulf war things had to held up to allow various units live fire training they had only laser tag type training. Appointments of the likable (to the boss or his supporters anyway) but unsuitable is a problem in most governments around the world. The appointment of almost all women lately shows politics before suitability.

Posted by Samrch | Report as abusive
 

Gee, who would think that a government abdicating its responsibilities would impact consumer confidence?

Posted by Sarasota | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  • # Editors & Key Contributors