Press Releases
Thomson Reuters/University of Michigan: Political Deadlock Hurts Consumer Spending
Ann Arbor - Consumer confidence continued to im-prove in December for the fourth consecutive month. The December gain primarily reflected more positive expecta-tion for the economy in 2012. Importantly, consumers more frequently reported hearing news about employment gains in the December survey. Unfortunately, consumers did not assess their personal finances more positively, with recent income declines being reported twice as frequently as income increases.
While the December survey re-corded the most optimistic expectations for the national economy since August, income changes were reported to be the worst since last Spring. Assuming the payroll tax cut will be passed and made retroactive to the start of 2012, the data indicate that inflation-adjusted personal consumption expenditures will rise by 1.8% during 2012.
Feedback