Mood of N.A. Consumers Fall to New Lows

Current economic conditions have seriously shaken the confidence of North American consumers. Last week, the Reuters/University of Michigan Surveys of Consumers said its index of confidence plummeted to 57.5 in October from 70.3 in September – its steepest monthly drop ever. The index’s all-time low was 51.7, which it hit in May 1980; it is now at its lowest point since June. “All of the prior double-digit declines were based on severe economic dislocations with the losses accelerated by fear and panic,” the report said.

Canadian consumer confidence also fell in October, reaching the lowest level in more than 25 years, according to the Conference Board of Canada’s consumer confidence index also released last week. The Board’s index fell to 73.9, the lowest level since the third quarter of 1982 during the height of the early 1980s downturn. “The global credit crunch and major stock market declines clearly had an effect on consumer confidence,” said Pedro Antunes, the board’s director of national and provincial forecasts. “Consumers felt that they would be worse off in six months, indicating concerns that the financial crisis would not be resolved quickly.” (Tire Review/Akron)