Jjwilson
06-14-2013, 09:59 AM
Social Security taxes increased for most Americans on Jan 1, decreasing their take-home pay. That, claims a new statement from the Conference Board, is the reason behind a plummeting consumer confidence. Resource for this article: get additional information by https://personalmoneynetwork.com/short-term-loans/ (https://personalmoneynetwork.com/)
Survey done monthly
One really significant thing to the business community knows how confident consumers are in the economy. That is why the Conference Board (http://personalmoneynetwork.com/moneyblog/2012/12/28/mixed-economic-indicators/), responsible for reports and research for the business community, releases a Consumer Confidence Survey every month.
Very low spending confidence
In Dec., the consumer confidence level was 66.7. In Jan 2013, that number dropped to 58.6, which is an 8.1-point drop. The number has not been so low since November 2011, which is a bad thing.
Below expectations of economists
The number is even lower than the projections of many economic experts. Guy Lebas, of Philadelphia's Janney Montgomery Scott LLC, estimated that it would be closer to 61.6.
“The thing that’s particularly troubling is the sizable decline in expectations. As those expectations deteriorate, it doesn’t bode particularly well for day-to-day consumer spending,” Lebas said.
About two-third of the economy has to do with consumer spending, specialists believe.
Lower take home pay (https://personalmoneynetwork.com/personal-loans) spurs drop
The tumble in consumer confidence is being blamed on the lower totals American workers are seeing on their salaries since the beginning of the year. That decrease is as a result of increased Social Security taxes that resulted from the deal cut by Congress and the White House to prevent the "fiscal cliff" from raising the income tax liabilities of most Americans. Part of that compromise was a temporary boost in Social Security taxes.
The Conference Board conducted its study on Jan 17, after many American workers had already received their first paychecks for the new year.
Economic climate may not pick up
Economic experts do not think the economy will get much better in the first quarter of the year.
There have been a ton of good economic indicators, and the consumer confidence level does not fit. This involves an increase in stocks, and increase in the Standard and Poor’s 500, a rise in auto sales and increases in home prices.
The nation’s economic climate is not getting better though since the joblessness rate is still at 7.8 percent.
Sources
Daily Finance (http://www.dailyfinance.com/2013/01/29/consumer-confidence-plunges-as-payroll-tax-holiday-ends/)
Conference Board (http://www.conference-board.org/about/index.cfm?id=1980)
Bloomberg (http://www.bloomberg.com/news/2013-01-29/consumer-confidence-in-u-s-falls-to-lowest-since-november-2011.html)
Survey done monthly
One really significant thing to the business community knows how confident consumers are in the economy. That is why the Conference Board (http://personalmoneynetwork.com/moneyblog/2012/12/28/mixed-economic-indicators/), responsible for reports and research for the business community, releases a Consumer Confidence Survey every month.
Very low spending confidence
In Dec., the consumer confidence level was 66.7. In Jan 2013, that number dropped to 58.6, which is an 8.1-point drop. The number has not been so low since November 2011, which is a bad thing.
Below expectations of economists
The number is even lower than the projections of many economic experts. Guy Lebas, of Philadelphia's Janney Montgomery Scott LLC, estimated that it would be closer to 61.6.
“The thing that’s particularly troubling is the sizable decline in expectations. As those expectations deteriorate, it doesn’t bode particularly well for day-to-day consumer spending,” Lebas said.
About two-third of the economy has to do with consumer spending, specialists believe.
Lower take home pay (https://personalmoneynetwork.com/personal-loans) spurs drop
The tumble in consumer confidence is being blamed on the lower totals American workers are seeing on their salaries since the beginning of the year. That decrease is as a result of increased Social Security taxes that resulted from the deal cut by Congress and the White House to prevent the "fiscal cliff" from raising the income tax liabilities of most Americans. Part of that compromise was a temporary boost in Social Security taxes.
The Conference Board conducted its study on Jan 17, after many American workers had already received their first paychecks for the new year.
Economic climate may not pick up
Economic experts do not think the economy will get much better in the first quarter of the year.
There have been a ton of good economic indicators, and the consumer confidence level does not fit. This involves an increase in stocks, and increase in the Standard and Poor’s 500, a rise in auto sales and increases in home prices.
The nation’s economic climate is not getting better though since the joblessness rate is still at 7.8 percent.
Sources
Daily Finance (http://www.dailyfinance.com/2013/01/29/consumer-confidence-plunges-as-payroll-tax-holiday-ends/)
Conference Board (http://www.conference-board.org/about/index.cfm?id=1980)
Bloomberg (http://www.bloomberg.com/news/2013-01-29/consumer-confidence-in-u-s-falls-to-lowest-since-november-2011.html)