Economic Measurements of U.S. Economy Remain Grim
The Conference Board released its monthly report on consumer confidence. It declined by nearly 5 points on a scale of 100 in only one month. In August the Conference Board rated consumer confidence at 53.2; its most recent indicator is at 48.5. Despite hype by Obama administration officials that the American economy is “headed in the right direction,” the consumers are not buying it. And they are not buying much of anything else, as weak consumer demand continues to undermine the deficit-popping government stimulus program, which is now ending.
With artificial life-support by the government of the wounded U.S. economy in its terminal phase, it is likely that the American housing market will continue its role of deconstructing what is left of the economy and consumer confidence. The latest Case-Shiller home price index reveals continued contraction. This is not a good omen, as government programs for propping up the residential real-estate market are winding down.
