Wednesday, June 27, 2012

Consumer Confidence Belongs to the Young

The consumer confidence numbers dipped again in May, in a poor omen for the economy moving forward. The Conference Board's benchmark Consumer Confidence Survey has now fallen to its lowest level since last January, when consumers appeared to be growing more optimistic.

One interesting divide in the confidence report is between the generations. Overall, the number of people who think that the economy will be worse a year from now barely nudged upward in this latest reading, from 17 percent to 17.6 percent. But for people over 55, that same figure jumped from 23 percent to 28 percent. Not only was it higher before, but it's getting worse at a much quicker pace.

Younger people certainly are more willing to spend money now. Only 5.8 percent of those 18 to 34 said now was a bad time for purchasing major household items such as furniture or large appliances. Among those 55 and over, nearly three times as many - 15.5 percent - said it was a bad time to buy major household items.

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