Confidence Still in the Ditch
Forty-three percent rate their finances positively.
June 16, 2009 — -- Consumer confidence wallowed in deep negative territory this week, with ratings of personal finances edging near their all-time low. And economic pessimists again slightly outnumber optimists, after the two reached parity last month for the first time in years.
The ABC News Consumer Comfort Index, based on ratings of current conditions, stands at -49 on its scale of +100 to -100, just 5 points from its record low in late January. It's down 7 points from its 2009 high five weeks ago, with ratings of personal finances the culprit: Amid steeply rising gasoline prices they've slipped 9 points in that time, while ratings of the national economy and the buying climate have been steady, albeit very low.
Click here for PDF with charts and data table.
Separate from views of current conditions, 31 percent say the economy's getting better, about the same as last month's five-year high and 12 points higher than the 28-year average. But 38 percent say it's still getting worse, slightly up from last month's 33 percent.
A separate ABC News poll this week, supporting the network's coverage of the "New Normal" in economic conditions, found broad concerns about the job market, spending power and the ability to save for retirement in the years ahead, with majorities saying they plan to spend less, save more and hold down their debt.
Current economic news can't help much, with rising gas prices (up 62 cents since the beginning of May), slumping retail sales over the past year and unemployment at the highest since 1983. Last week's Federal Reserve "Beige Book" report, which noted sluggish sales and weak real estate and labor markets, echoed consumer concerns.
INDEX – As noted, ratings of personal finances, typically the best of the CCI's three measures, have slipped to 43 percent positive, down 9 points since from their recent high, 52 percent May 10. That's the steepest such decline since May 2008, bringing this measure to just 2 points from its record low in January and 14 points below average.
Ratings of the buying climate, at 25 percent positive, have hovered within a 3-point range since mid-April. The current measure matches the average for the year and is 12 points below the long-term average.
