Consumers to Bernanke: Huh?

July 21, 2009 — -- Ben Bernanke may be cautiously upbeat, but ordinary consumers didn't get the memo.

The Fed chairman testified Tuesday that the pace of the economy's decline "appears to have slowed significantly," with "tentative signs of stabilization." But he also noted that job insecurity, falling home values and tight credit remain significant problems.

Click here for PDF with charts and data table.

Consumers seem focused on the second part of that message. The ABC News Consumer Comfort Index stands at -50 on its scale of +100 to -100. It's been this low for five weeks straight, and just 22 times in more than 1,200 weekly polls – half of them, this year.

The CCI's just 4 points off its record low in polling since late 1985, -54 six months ago. And one of its components echoes Bernanke's warnings about consumer spending: Just 22 percent of Americans say it's a good time to buy things they want and need, tying the 2009 low for the third week running.

In a separate ABC News/Washington Post poll released this week, 77 percent of Americans said they're worried about the economy's direction in the coming years; 63 percent expressed worry about their own family's financial situation; confidence in President Obama's recovery plan fell to 56 percent, from 72 percent in January; and Obama's overall approval rating slipped to 59 percent, 10 points from its peak.

One chief culprit is unemployment, 9.5 percent, its highest in 26 years – and Bernanke noted that the labor market has continued to weaken. There's also the record trillion-dollar deficit; people who are concerned about it are especially likely to worry about the economy's future overall.

INDEX – The CCI is based on ratings of the economy and personal finances, as well as the buying climate. Today 43 percent of Americans say their own finances are in excellent or good shape, well below the long-term average, 57 percent, and within sight of their record low, 39 percent late last month. They'd reached 52 percent positive in May before stumbling this summer.