Americans' Faith in Economy Hits 9-Month Low as Job-Related Worries Rise

Strategic Insights -

Consumer confidence fell in August to its lowest level since November, with job-related worries being the primary concern, according to a report. The decline in confidence could lead to tightened purse strings if job growth stumbles or fuel costs rebound. Despite this, analysts expect job creation and personal spending to come in higher in reports due later this week, and pump prices have fallen more than 5 percent over the past month.

Key Takeaways:

  • Consumer confidence fell to its lowest level since November, primarily due to job-related worries.
  • The decline in confidence could lead to tightened purse strings if job growth stumbles or fuel costs rebound.
  • Analysts expect job creation and personal spending to come in higher in reports due later this week.
  • Pump prices have fallen more than 5 percent over the past month, providing some relief in people's travel budgets.
  • Consumers surveyed reported small increases in their plans to buy homes and major appliances, despite their dwindling confidence.
  • Schering-Plough Corp. agreed to pay $435 million and plead guilty to conspiracy to settle a federal investigation into marketing of its drugs for unapproved uses.
  • The company will pay $255 million to resolve civil aspects of the investigation and $180 million as a criminal fine.
  • American Family Insurance of Madison tied for fourth among 23 auto insurance companies in a customer satisfaction survey by J.D. Power and Associates.
  • Topping the list was Amica Mutual with 871 points, while American Family earned 803 points on a 1,000-point scale.
  • Mercy Health System in Janesville was named the best employer in the country of workers over 50 by AARP, based on factors such as recruiting practices, training opportunities, and health and pension benefits.

Statistics:

  • Consumer confidence fell to 88.3, the lowest level since November since 1995 (According to Bureau of Labor Statistics).
  • Jobless claims rose to 4.8 percent in July, a five-month high (According to Bureau of Labor Statistics).
  • Pump prices have fallen more than 5 percent over the past month (According to EIA).
  • 28 percent of Mercy Health System's employees are older than 50 (According to Mercy Health System).
  • American Family Insurance earned 803 points on a 1,000-point scale in the customer satisfaction survey (According to J.D. Power and Associates).
  • $435 million: The amount Schering-Plough Corp. agreed to pay to settle charges (According to Schering-Plough Corp.).

Sources:

  • Schering-Plough Corp. Press Release (no date mentioned)
  • American Family Insurance of Madison (no date mentioned)
  • J.D. Power and Associates (no date mentioned)
  • AARP (no date mentioned)
  • Bureau of Labor Statistics (no date mentioned)
  • EIA (no date mentioned)