Consumer confidence fell in February as uncertainty in the job market and business conditions increased, according to a new report released by The Conference Board, a market research group.
The index declined from 106.8 in January to 101.7 - 100 represents the base year of 1985 and is the basis for comparison - which is still far above the bottomed-out numbers reported after Hurricane Katrina. The report is based on a representative sample of 5,000 U.S. households.
Participants expecting business conditions to worsen rose from 10.5 percent to 11.1 percent over the last two months, and those expecting fewer jobs to be available climbed from 15.2 percent to 20 percent.
It isn't uncommon to have monthly declines in this index
said Richard Vedder, distinguished professor of economics at Ohio University. We have a lot of little negatives right now. Vedder said things like the war in Iraq and high oil prices have contributed to the pessimism, but that these aren't earth-shattering things.
However, other indicators point to a confident American economy. For instance, according to reports on the U.S. savings rate, Americans spent more money last year than they saved - a sign that average consumers are not worried about the economy.
The real problem hasn't been a lack of confidence but an over exuberance about the economy Vedder said. A little cooling off could be good.
The numbers and reports aside, many OU students said they are not too worried about the economy.
Junior Kathleen Vogtsberger said she is more worried about attending graduate school in two years than the condition of the labor market, though she did say the economy has seen better days.
It's not as good as it has been she said.
Joyelle Freeman, a freshman from Pittsburgh, said her hometown has been experiencing an economic slump.
They're having some trouble there
she said. I think things could be better.
Other students said the economy is fine.
I think the economy is doing pretty well; it seems to be on an upswing
freshman Brendan Lucas said. It seems less prevalent in the news.
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Justin Thompson
