Consumer Confidence Lowest in Months
Sept. 6, 2005 — -- Consumer confidence reached its lowest level since just before Memorial Day this week, led by declining ratings of the national economy and a worsening outlook in the South.
Hurricane Katrina may be playing a role, but the decline predates Katrina. The ABC News/Washington Post Consumer Comfort Index has lost seven points in the last three weeks, dropping from -7 to -14 on its scale of +100 to -100. The decline in the South, similarly, began before Katrina hit.
Gasoline prices, at a record $3.07 today, are a major irritant. In a separate ABC/Post poll released Sunday, only 20 percent of Americans approved of the federal government's response to oil supply issues and rising gasoline prices in Katrina's wake. And 72 percent said they believe oil companies and gas dealers are taking advantage.
INDEX - The ABC/Post CCI is based on Americans' ratings of the national economy, the buying climate and their personal finances. This week 34 percent rate the economy positively, the fewest since May 15. That's not unexpected: In an Aug. 21 ABC News poll, 81 percent expressed concern that rising gas prices would damage the broader economy.
In this week's CCI, 36 percent call it a good time to buy things, while more, 58 percent, say their own finances are good. These have been steadier than the national economy rating -- both are at their 2005 averages, while national economy ratings are four points below the year's average. The overall index is its lowest since May 22.
TREND - At -14, the index is below its average of the year so far, -11, and its long-term average, -9 in polls since December 1985. The index reached an all-time high of +38 in January 2000, and an all-time low of -50 in February 1992. This year, it's been as high as -7 and as low as -19.
GROUPS - As usual, the CCI is higher overall in better-off groups. It's +35 among higher-income Americans while -54 among those with the lowest incomes, 0 among college graduates while -25 among those who haven't finished high school, -9 among whites but -38 among blacks and -7 among men while -21 among women.
Related Stories
ABC News Live