There’s some bad news to report on the U.S. economy this morning, and of course, it was unexpected:
US Economic & Consumer Confidence Plunges To 10-Month Lows As "Hope" Crashes http://t.co/PZvQuw5Vc1
— zerohedge (@zerohedge) July 28, 2015
Consumer confidence hits 90.9 in July, versus 100 estimate http://t.co/SsYeV59z0p
— The Exchange (@CNBCTheExchange) July 28, 2015
Although by now we’ve come to expect the unexpected bad news, which economists seem to always miss. Today’s “plunge” as measured by The Conference Board’s Consumer Confidence Index, however, was incredibly off the mark. How in the world did they not see this trainwreck coming?
Since 1999, there have only been seven bigger misses in Consumer Confidence relative to expectations. Here's a list. pic.twitter.com/2RRDZxSkFt
— Bespoke (@bespokeinvest) July 28, 2015
As for what caused the decline, economists at The Conference Board blame Greece and China:
Says Lynn Franco, Director of Economic Indicators at The Conference Board: “Consumer confidence declined sharply in July, following a gain in June. Consumers continue to assess current conditions favorably, but their short-term expectations deteriorated this month. A less optimistic outlook for the labor market, and perhaps the uncertainty and volatility in financial markets prompted by the situation in Greece and China, appears to have shaken consumers’ confidence. Overall, the Index remains at levels associated with an expanding economy and a relatively confident consumer.”
Consumers’ assessment of current conditions was somewhat less favorable in July. Those saying business conditions are “good” decreased from 26.1 percent to 24.2 percent. However, those claiming business conditions are “bad” was virtually unchanged at 17.9 percent. Consumers were slightly less positive about the job market. Those stating jobs are “plentiful” decreased from 21.3 percent to 20.7 percent, while those claiming jobs are “hard to get” increased marginally from 26.1 percent to 26.7 percent.
Or maybe people have finally stopped listening to President Obama’s happy-talk:
Pres. Obama denies a #WarOnCoal – we've gone from 7th in unemployment in '08 to 50th today. 1 constant- Obama. W/ @TomRoten
— David B. McKinley (@RepMcKinley) July 28, 2015
Obama & Drive-by Medias Big Lie: 5.6% Unemployment http://t.co/v2bv7DAlYM #PJNet
— WSCP1 #Cult45 (@WSCP1) July 28, 2015
"If you are African American, real unemployment for young people is 51%" Bernie Sanders repudiating the Obama admin. Media doesn't cover
— Stephen Miller (@redsteeze) July 27, 2015
"People today are worried about jobs because they know unemployment is high" – Bernie Sanders again calling out the Obama admin and media.
— Stephen Miller (@redsteeze) July 27, 2015
https://twitter.com/RonNussbeck/status/621691178367369216
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