Consumers pessimistic about economy, jobs

04.01.09
By Nicholas Storie

Managing household finances during uncertain financial times has left many consumers feeling pessimistic about the short-term economic outlook.

The March reading of the Conference Board Consumer Confidence Index reveals that very few American households are any more positive on economic recovery than they were last month.

Other economic indicators released by the Conference Board also show a glass-half-empty mentality has swept the nation.

"The Present Situation Index suggests that the overall state of the economy remains weak and that more job losses are on the horizon. Apprehension about the outlook for the economy, the labor market and earnings continues to weigh heavily on consumers' attitudes," said Lynn Franco, director of the Conference Board Consumer Research Center.

"Looking ahead, consumers remain extremely pessimistic about the short-term future and do not foresee a turnaround in economic conditions over the coming six months."

And many consumers will be looking ahead to the federal government's announcement on Friday about the status of the job market during March considering almost half of consumers polled by the Conference Board say that jobs are "hard to get."

A MarketWatch poll of economists forecasts a loss of nearly 700,000 jobs and an uptick in the unemployment rate to 8.5 percent when the government issues its jobs report.

Given these dismal expectations, it is unsurprising that some consumers are bracing for flat or potentially even lower wages and compensation in the future.

Fewer consumers expect to see an increase in their incomes, says the Conference Board. This factor may push individuals and households to save more in order to remain current on mortgage loans and credit card debt that is quickly escalating.

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Consumers worry about managing household finances