ABC NEWS/WASHINGTON POST CONSUMER INDEX - 9/18/05 EMBARGOED FOR RELEASE AFTER 5 p.m. Tuesday, Sept. 20, 2005
Economic Pessimism Spikes
Economic pessimism spiked this week to its worst in more than 13 years, punctuating a steep five-week decline in consumer confidence that's been deepened by the aftermath of Hurricane Katrina and $3 gas.
Public ratings of current economic conditions are now their worst since May 2003. And more striking is the look ahead: Sixty percent of Americans now say the economy is getting worse, up a very steep 19 points from last month to the highest level of pessimism since December 1991.
The Fed took note of economic concerns today, saying that Katrina and its impact on economic activity and gasoline prices "have increased uncertainty about near-term economic performance." Nonetheless it said it didn't see these as a "persistent threat," and raised interest rates by a quarter-point.
INDEX - The ABC News/Washington Post Consumer Comfort Index, based on views of current economic conditions - the national economy, the buying climate and personal finances - stands at -23 on its scale of +100 to -100, down 11 points since Katrina struck and down 16 points in the last five weeks. The index is lowest, -27, in the South, but nearly as weak in the East and Midwest as well.