Gloomy Economic Outlook for 2008
Many economic indicators are hinting of a recession…
In the wake of high gas prices, reduction in credit availability, lackluster consumer confidence and weak employment prospects, the economic barometers are pointing towards a recession. A recent Discover survey reveals consumer confidence as shaky and U.S. consumer confidence at its lowest level in more than two years. The number of consumers who rate the economy as good or excellent fell to 28%, a decline from last month of nearly five points. The latest “Discover U.S. Spending Monitor” fell 3.4 points in November, the lowest level in more than six months. Other studies that show a decline in confidence are:
- 55% of consumers say they will spend less this year than they did last year.
- The Consumer Confidence Index dropped to 87.3 in November from 95.2 in October.
- Credit Manager’s Index fell to 53.1. in November from 53.8 in October.
- The Business and Industry Economic Outlook Survey of the American Institute of Certified Public Accountants found that optimism about the economy among executive CPAs plunged in the fourth quarter to its lowest level in three years.
- The RBC CASH Index hit its lowest level in more than two years during November, down more than 16 points from October’s 80.6 level.
- The Discover Small Business Watch index found that economic confidence among small business owners declined in November for the fourth consecutive month, falling to its lowest point this year.
The National Association of Credit Management says the Fed will likely cut rates again this month and will continue to cut the Fed Funds rate well into 2008, perhaps as low as 3.5%
