Doug Short had a blog post of May 29 (“May Consumer Confidence: The Third Month of Shrinkage") in which he presents the Conference Board Consumer Confidence and Thomson/Reuters University of Michigan Consumer Sentiment Index charts. They are presented below:
(click on charts to enlarge images)
There are a few aspects of the above charts that I find highly noteworthy. Of course, the continuing subdued absolute levels of these two surveys is disconcerting.
Also, I find the “behavior” of these readings to be quite disparate as compared to the other post-recession periods, as shown in the charts between the gray shaded areas (the gray areas denote recessions as defined by the NBER.)
While I don’t believe that confidence surveys should be overemphasized, I find these readings to be very problematical, especially in light of a variety of other highly disconcerting measures highlighted throughout this blog.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1313.32 as this post is written