U.S. consumer confidence reached its lowest level in more than two years this month amid concerns over record-high oil prices, continued trouble in the housing market and higher inflation, according to the most recent results of the RBC CASH Index.
Although consumer attitudes deteriorated across the board, the substantial drop in expectations contributed heavily to the sizeable decline in the overall index.
As a result, the overall index for November 2007 stands at 64, down more than 16 points from October’s 80.6 level.
“While consumer sentiment has experienced some increases in confidence over the past few months, November’s results point to the continuation of the overall year-long downward trend in economic confidence,” stated T.J. Marta, economic and fixed income strategist for RBC Capital Markets.
“This month’s consumer sentiment has collapsed to a level similar to that in the wake of Hurricane Katrina in 2005. Consumers have much to worry about: Rising energy and food prices, falling house prices and tightening lending standards.”
The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings and confidence to make large investments. This month’s findings are based on a representative nationwide sample of 1,005 adults polled November 5-7.
U.S. consumer confidence plummets
Expectations for the future nose-dive into negative territory
- By: IE Staff
- November 9, 2007 November 9, 2007
- 09:45