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Consumer Confidence Plummets

Wall Street woes might be spreading to Main Street

By Kevin Spak, Newser Staff

Posted Aug 17, 2007 5:37 PM CDT

(Newser) – Consumer confidence dropped dramatically in August, according to the latest index released by Reuters and the University of Michigan. The metric places consumer sentiment at 83.3, the lowest reading of the year, and well below the predicted 88.0. It may be a sign that chaos on Wall Street is affecting normal Americans, analysts say.

The index, which is compiled from household surveys, had been optimistic in July, returning a figure of 90.4. August also showed a precipitous drop in overall economic conditions. The data comes hot on the heels of the Federal Reserve’s decision to drop its primary discount rate by a half-point, and may help spur the Fed to cut interest rates next month or earlier.

A pedestrian passes by a brokerage's stock monitors, Wednesday, Aug. 15, 2007, in Taipei, Taiwan. Taiwan shares plunged Wednesday to their lowest level in two months after another triple digit loss on... (Associated Press)

The flags on the facade of the New York Stock Exchange are a backdrop for a Wall Street street sign, Thursday morning, Aug. 16, 2007. U.S. stocks appeared headed for another sharp retrenchment Thursday... (Associated Press)

Shoppers cross Geary street near a Macy's store in San Francisco, Monday, Aug. 13, 2007. Macy's Inc. said Wednesday, Aug. 15, 2007 its second-quarter profit fell by 77 percent, weighed down by its takeover... (Associated Press)

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Wall Street woes might be spreading to Main Street

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Consumers, businesses tighten belts just as economy needs fuel

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As Wall Streets meltdown accelerates, the Fed chief adapts on the fly

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Confidence is falling as inflation rises

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Wall Street woes might be spreading to Main Street

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OTHER STORIES ON OUR RADAR

Related Links

Wall Street • Federal Reserve • consumer confidence • consumer spending • interest rate • consumer confidence index

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Jobless Rate Rises While GDP Rebounds

Economic growth balances looming threat of inflation

Fed Keeps Interest Rates at Record Low

Economy picking up, but not enough that inflation is a worry

Credit Crunch Slows Spending

Consumers, businesses tighten belts just as economy needs fuel

Bernanke Tosses Out His Rule Book

As Wall Streets meltdown accelerates, the Fed chief adapts on the fly

Consumer Spending Stalls Again

Confidence is falling as inflation rises

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?