ANN ARBOR – A survey showed U.S. consumers continue to have little faith in the federal government, and various fiscal crises, including debates about the debt ceiling, the fiscal cliff and the partial government shutdown, do not help, causing consumers to remain grim in their economic outlooks.
Richard Curtin, director of the Thomson Reuters, University of Michigan surveys of consumers, showed consumers have lost confidence in President Barack Obama’s economic policies, and the news reported on various policies implies the government is the problem, and not a solution.
“The government’s economic policy has become increasingly a cause for consumer discontent,” he said. He also said situations like the partial shutdown of the federal government raise uncertainty, so people cannot plan.
Consumers also remain grim on the economy in the next year, due to “congressional follies,” and expect small declines in the unemployment rate.
The survey showed weaker financial prospects for the year ahead and weaker income prospects, which continue to be at record lows with no budging, particularly among those in the bottom two-thirds of the income spectrum.
Curtin said the way consumers act currently is different than in the past, particularly due to a distrust of government. He said in the past, an anticipated tax cut could change behavior.
But now, consumers would wait until the tax cut took effect, and then wait longer to see how it affects their lives before increasing consumption.
The survey also showed rising employment of men and women older than age 55. For women, 33 percent are employed and for men, 43.5 percent.
It shows diminished employment for those ages 25-34. For men in the age group, 81.5 percent are employed, and for women, 68 percent.
For those younger than age 25, employment is at near record lows, with men at 46.9 percent and women at 46.3 percent.
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
