September 27, 2005

The White House might think the US economy is doing just fine.

But the rest of the country seems to be thinking something else.

Each month, the Conference Board puts out a set of figures on consumer and business confidence in the US economy. Those figures are widely looked to as an indication of where the economy is heading over the next few months.

The board's latest figures, for September, are not happy news. While both business indexes took substantial drops between August and September, the consumer index 'plummeted.' .' Consumer confidence is now at its lowest level in two years, dropping more than twice as fast as experts had predicted.

Just a response to Hurricane Katrina? Or a sign of bigger economic problems? Our money is on the latter.

Via Reuters.

More: In more bad economic news, new housing starts in the US dropped by 9.9 percent last month. This is the steepest drop since the beginning of 2005.

Posted by Magpie at September 27, 2005 05:09 PM | Economy | Technorati links |

Just wait until the first gas bill of winter shows up. It's going to be a bleak Christmas for retailers in the NE and midwest.

Posted by: Ron In Portland at September 27, 2005 06:26 PM