Monday, January 9, 2012

Consumer Sentiment: WOMP.

Consumer Sentiment is a measure of how people feel about their wealth and how happy they are.  What the below graph reveals is that people feel worse than average 27 months after the peak in economic activity as defined by the National Bureau of Economic Research (NBER).

The graph below reveals that the general populus aren't feeling that their situation is all that hunky-dory .  This may be due to a bunch of things: their net worth has fallen with respect to their home values, they are in serious debt, their spouse left them for another, younger version of themselves and maybe there even unemployed.  But whatever the reason the bottom line is that people still feel like doo doo.

Consumer sentiment is low. Thats undoubtable.  My guess is that they'll feel significantly better if jobs were more readily available and their real disposible incomes were higher, maybe even significantly higher.  As mentioned in a previous post- wage growth has been rather stagnant.

Keep dancin'

Steven J.

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