This is an interesting article about a supposed drop in consumer morale in February. The index dropped for the first time in six months. Despite optimism in job prospects, the index reflected general anxiety over personal finances. This article made me think of the role of consumer confidence in an economy and how important consumer morale can be to an economy in recovery. Do you think there are ways to stimulate consumer confidence? How important is consumer satisfaction with their incomes?
Even though the report for consumer morale stated a drop, I still think that the economy is moving in the right direction. After the holiday season and especially in Michigan, morale can be down in the winter months. Even though people report that their consumer confidence is down they probably are still spending and helping pave the way for recovery.
ReplyDeleteI agree, Colleen.
DeleteI think that consumer confidence is a huge part of how the economy is doing. It is underestimated in my opinion. I think the big reason for that is because it is a hard thing to calculate and objectively measure. But If people do not want to spend money, then it starts a bad chain reaction. Businesses lose money and then ultimately banks lose money and the economy slows down.
Deletewe also need to consider the fact that tax season is just around the corner. Colleen makes a good point about the holiday season being over and people not spending as much. With valentines day coming around I wonder if this changes things at all?
DeleteI think that consumer confidence is very important when trying to stimulate an economy such as the US. I agree with Colleen that we are probably moving in the right direction, and people should be more confident now and that should affect the economy. Personally, I'm not too sure how to increase consumer confidence of the entire nation, but I think confidence and faith in the government is probably a good start. If people think the government is doing the right things to stimulate the economy the overall consumer confidence will increase and effect the economy.
ReplyDeleteI think the consumer morale drop is just short-term, and slowly but surely the economy is moving in the right direction. If there was an increase in consumer confidence I am sure the economy would show an increase in improvement.
ReplyDeleteI agree that this drop is only short term and the economy is going in the right direction. Since the holiday season is over with, people always go into a lull until it gets nicer out and people start getting ready for beach season
ReplyDelete