The Other, Unmentioned Consumer Index
With all eyes glued to the Michigan numbers yesterday which were supposed to start another recursive market spike, most pundits failed to notice the much less cheerful ABC consumer comfort index which was virtually unchanged, and in fact the buying climate assessment indicated a deterioration.
Here are the results, via Bloomberg:
U.S. overall consumer confidence rose last week, according to an ABC News poll released Tuesday.
The consumer comfort index rose one point to -45 in the week ended Aug.
from -46 a week earlier.
According to the survey, 8% of respondents expressed confidence in the economy, up from 7% the week before. Also, 49% of those polled said their own finances were in good standing, up from 48% in the prior week. In assessing the buying climate, 25% of respondents said it was good, down from 26% a week earlier.
The consumer comfort index was based on a random survey of 1,000 respondents nationwide ended Aug. 23. The index measures typical Americans' confidence in three areas: the national economy, their own finances, and their willingness to spend money, according to the report.
Here is the definition of the ABC Consumer Comfort index:
levels of consumer comfort usually accompany any fall in income and
wages and precede drops in consumer spending. A low or
falling ABC Consumer Comfort value is considered an early indicator of
an economic downturn. As a result, investors, retailers and traders
alike all watch the figure for insight into the general health of the
Note: The index incorporates the
most recent week's data with the results of the past three weeks,
yielding a rolling four week average. Results are calculated as the
difference in percent of positive and negative numbers.