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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

February consumer confidence drops

The early read on consumer confidence in February shows it has dropped from January, disappointing forecasters.

According to the Reuters/University of Michigan monthly survey released moments ago, the consumer confidence index dropped from a recent high of 74.4 in January to 73.7 in February. Forecasters had expected consumer confidence to continue climbing, hitting 75.

The index is broken down into two parts -- the present situation index and the expectations index.

The present situation index -- how consumers feel about their situation right now -- dropped from 84.1 in January to 81 in February.

The expectations index -- how consumers think the economy will be six months -- dropped from 70.1 in January to 66.9 in February.

The January bump could have been residual Christmas good feelings or it could have been a reaction to the fourth-quarter GDP, which came in at a 5.7 percent annual growth rate.

But a month removed, with unemployment still up around 10 percent, perhaps the optimism is fading.

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By Frank Ahrens  |  February 12, 2010; 10:11 AM ET
 | Tags: consumer confidence  
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Comments

Rules for our wonderful economy which is so dependent upon consumer spending.

Jobs follow growth.

Consumer spending follows jobs.

Growth follows consumer spending.

Posted by: bsallamack | February 12, 2010 12:56 PM | Report abuse

The comments to this entry are closed.

 
 
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