U.S. Economy: Consumer Confidence, Chicago Index Fall

[papau]

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aVJ8U2G8uCck&refer=news_index


U.S. Economy: Consumer Confidence, Chicago Index Fall (Update2)
Aug. 31 (Bloomberg) -- Consumer confidence in the U.S. economy fell in August for the first time since February as job growth faded and oil prices reached a record. Chicago-area business expanded at a slower rate, reflecting lower orders. <snip>

The Conference Board's index of consumer confidence fell to 98.2 this month (Blomberg expected averaged 103.5, but it remains up from the 79.8 for all of 2003), the first decline since February, from a revised 105.7 in July. The National Association of Purchasing Management- Chicago said its regional Business Barometer fell to 57.3 this month from 64.7 in July. Readings greater than 50 signal growth. <snip>

Consumer confidence was at 100 or better in November of the three election years since 1972 in which an incumbent was running, and all won, Conference Board economist Delos Smith said. Today's reading of 98.2 ``puts George Bush right on the edge,'' he said. ``What does it signify? A dead heat right now.''
<snip>

The Chicago purchasing-managers' measure is among others this month to show slower manufacturing after a second quarter in which consumer spending was the weakest since the end of 2001. The index of new orders fell to 58 this month from 68.7 in July, while a gauge of production dropped to 61.8 from 69.5.

<snip>

The Institute for Supply Management's national manufacturing index is forecast to drop to 60 for August from 62 in July, according to a separate Bloomberg survey. The report is to be released tomorrow at 10 a.m. New York time. <snip>

1. Prices paid went up--

Can you say, "Let's buy from China instead, where even with inflation, it is cheaper overall?"