In two separate reports released today, both manufacturing and consumer confidence are slipping in America.
In a report from the Federal Reserve Bank Of Richmond’s report on manufacturing in the Central Atlantic region:
Manufacturing activity in the central Atlantic region contracted at a less pronounced rate this month, after deteriorating in July, according to the Richmond Fed’s latest seasonally adjusted survey. Looking at the main components of activity, shipments edged higher, employment turned negative, and the weakness in new orders moderated somewhat. Evidence of diminished weakness was also reflected in most other indicators. District contacts reported that backlogs, capacity utilization, and delivery times remained negative but improved from July readings. Moreover, finished goods inventories grew at a slightly slower pace, while growth in raw materials was nearly unchanged.
Meanwhile, consumer confidence is at its lowest rate in 10 months. Bloomberg reported the following:
The Conference Board’s index decreased to 60.6 from a revised 65.4 in July, figures from the New York-based private research group showed today. The 4.8-point decrease was the biggest since October.
Some of the stated reasons for the decline in confidence include rising gasoline prices, unemployment over 8% since the start of 2009 and limited income gains.
Analysts fear that the longevity of pessimistic consumers “raises the risk of a pullback in household purchases that account for about 70 percent of the world’s biggest economy.”
For More details on the Consumer Confidence report, click HERE.