Weatherford Democrat

Community News Network

November 21, 2013

Consumers' outlook improves after two-year low

WASHINGTON — American consumers became less pessimistic in November about the economic outlook as the effect of last month's partial government shutdown dissipated.

The gap between positive and negative expectations for the economy shrank to minus 14 from a two-year low of minus 31 in October, according to data from the Bloomberg Consumer Comfort Index released Thursday. The weekly measure of sentiment fell to minus 34.6 in the period ended Nov. 17 from minus 33.9.

Increased wealth from higher stock and home prices, cheaper gasoline and more employment opportunities are providing households with the means to boost purchases. A pickup in wage growth would provide an additional spark for spending, which accounts for almost 70 percent of the U.S. economy.

"Consumer sentiment has essentially reset compared to where it was prior to the government shutdown, which should assuage fears of a complete disaster during the holiday shopping season," said Joseph Brusuelas, a senior economist for Bloomberg LP in New York. Without bigger gains in wages, "it will be difficult for consumers to support spending beyond the modest levels observed in the third quarter."

The monthly expectations survey showed 23 percent of respondents said the economy was getting better, compared with 16 percent, the fewest in two years, who said so a month earlier. The share of those who said it's getting worse declined by 10 percentage points to 37 percent.

Two of the Bloomberg weekly gauge's three components weakened. The index of personal finances decreased to minus 2.1, the fifth negative reading in six weeks, from zero the prior week.

A gauge of Americans' view of current economic conditions fell to minus 63.7 from minus 62.5 the week before.

The buying-climate barometer rose to a five-week high of minus 38.2, as more households indicated that now is the time to make purchases. The gain may have reflected cheaper prices at the pump. A gallon of regular gasoline dropped to $3.18 on Nov. 11, the lowest level since February 2011, according to AAA, the biggest U.S. auto group.

Sales growth in categories like flooring and kitchens "reflects an emerging willingness among consumers to finally replace items that are worn or outdated, or to make significant enhancements to their homes," Lowe's Cos. Chief Executive Officer Robert Niblock said on an earnings call Wednesday.

Retail sales climbed in October by the most in three months, a report yesterday showed. The 0.4 percent increase exceeded the median estimate in a Bloomberg survey.

To build on the October gains, some retailers such as Best Buy Co. said they will have to rely on discounting to lure customers. Best Buy will face an "increasingly promotional environment" in the fourth quarter as it plans to match rivals' online prices this holiday-shopping season, Chief Financial Officer Sharon McCollam said Nov. 19.

Thursday's figures continued to show a divergence in attitudes between the highest- and lowest-earning groups. The sentiment reading for those making $100,000 or more a year increased to 17.3, while it was minus 51.4 for those with incomes less than $50,000.

The Bloomberg Consumer Comfort Index, compiled by Langer Research Associates in New York, conducts telephone surveys with a random sample of 1,000 consumers ages 18 and older. Each week, 250 respondents are asked for their views on the U.S. economy, personal finances and buying climate. The margin of error for the headline figure is 3 percentage points.

The percentage of negative responses is subtracted from the share of positive views and divided by three. The most recent reading is based on the average of responses over the previous four weeks.

The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative.

1
Text Only
Community News Network
  • Why a see-through mouse is a big deal for scientists

    A group of Caltech researchers announced in Cell Thursday their success in making an entire organism transparent. Unfortunately, this isn't any kind of "Invisible Man" scenario: The organism in question is a mouse, and the mouse in question is quite dead.

    July 31, 2014

  • lockport-police.jpg Police department turns to Facebook for guidance on use of 'negro'

    What seems to be a data entry mistake by a small town police department in western New York has turned into a social media firestorm centered around the word "negro" and whether it's acceptable to use in modern society.

    July 31, 2014 3 Photos

  • The virtues of lying

    Two computational scientists set out recently to simulate the effects of lying in a virtual human population. Their results, published in the Proceedings of the Royal Society B, show that lying is essential for the growth of a cohesive social network.

    July 31, 2014

  • Survey results in legislation to battle sexual assault on campus

    Missouri U.S. Sen. Claire McCaskill joined a bipartisan group of senators Wednesday to announce legislation that aims to reduce the number of sexual assaults on college campuses.

    July 30, 2014

  • An alarming threat to airlines that no one's talking about

    It's been an abysmal year for the flying public. Planes have crashed in bad weather, disappeared over the Indian Ocean and tragically crossed paths with anti-aircraft missiles over Ukraine.

    July 30, 2014

  • Sharknado.jpg Sharknado 2 set to attack viewers tonight

    In the face of another "Sharknado" TV movie (the even-more-inane "Sharknado 2: The Second One," premiering Wednesday night on Syfy), there isn't much for a critic to say except to echo what the characters themselves so frequently scream when confronted by a great white shark spinning toward them in a funnel cloud:
    "LOOK OUT!!"

    July 30, 2014 1 Photo

  • linda-ronstadt.jpg Obama had crush on First Lady of Rock

    Linda Ronstadt remained composed as she walked up to claim her National Medal of Arts at a White House ceremony Monday afternoon.

    July 29, 2014 1 Photo

  • Can black women have it all?

    In a powerful new essay for the National Journal, my friend Michel Martin makes a compelling case for why we need to continue the having-it-all conversation.

    July 29, 2014

  • Facebook continues moneymaking trend

    Facebook seems to have figured out - for now at least - the holy grail for all media right now: how to make money selling mobile ads.

    July 24, 2014

  • 072214 Diamond Llama 1.jpg Llama on the loose corralled in Missouri town

    A llama on the lam cruised Main Street Tuesday before it mistook a resident’s fenced backyard for a place to grab a meal and freshen up.

    July 22, 2014 2 Photos

Must Read
Top News
House Ads
AP Video
Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN
Poll

The City of Weatherford is considering an ordinance that would ban smoking inside restaurants and enclosed areas where food is prepared, sold or consumed. Do you agree with this proposal?

Yes
No
Undecided
Don't care
     View Results