McAlester News-Capital, McAlester, OK

Community News Network

November 21, 2013

Consumers' outlook improves after two-year low

WASHINGTON — American consumers became less pessimistic in November about the economic outlook as the effect of last month's partial government shutdown dissipated.

The gap between positive and negative expectations for the economy shrank to minus 14 from a two-year low of minus 31 in October, according to data from the Bloomberg Consumer Comfort Index released Thursday. The weekly measure of sentiment fell to minus 34.6 in the period ended Nov. 17 from minus 33.9.

Increased wealth from higher stock and home prices, cheaper gasoline and more employment opportunities are providing households with the means to boost purchases. A pickup in wage growth would provide an additional spark for spending, which accounts for almost 70 percent of the U.S. economy.

"Consumer sentiment has essentially reset compared to where it was prior to the government shutdown, which should assuage fears of a complete disaster during the holiday shopping season," said Joseph Brusuelas, a senior economist for Bloomberg LP in New York. Without bigger gains in wages, "it will be difficult for consumers to support spending beyond the modest levels observed in the third quarter."

The monthly expectations survey showed 23 percent of respondents said the economy was getting better, compared with 16 percent, the fewest in two years, who said so a month earlier. The share of those who said it's getting worse declined by 10 percentage points to 37 percent.

Two of the Bloomberg weekly gauge's three components weakened. The index of personal finances decreased to minus 2.1, the fifth negative reading in six weeks, from zero the prior week.

A gauge of Americans' view of current economic conditions fell to minus 63.7 from minus 62.5 the week before.

The buying-climate barometer rose to a five-week high of minus 38.2, as more households indicated that now is the time to make purchases. The gain may have reflected cheaper prices at the pump. A gallon of regular gasoline dropped to $3.18 on Nov. 11, the lowest level since February 2011, according to AAA, the biggest U.S. auto group.

Sales growth in categories like flooring and kitchens "reflects an emerging willingness among consumers to finally replace items that are worn or outdated, or to make significant enhancements to their homes," Lowe's Cos. Chief Executive Officer Robert Niblock said on an earnings call Wednesday.

Retail sales climbed in October by the most in three months, a report yesterday showed. The 0.4 percent increase exceeded the median estimate in a Bloomberg survey.

To build on the October gains, some retailers such as Best Buy Co. said they will have to rely on discounting to lure customers. Best Buy will face an "increasingly promotional environment" in the fourth quarter as it plans to match rivals' online prices this holiday-shopping season, Chief Financial Officer Sharon McCollam said Nov. 19.

Thursday's figures continued to show a divergence in attitudes between the highest- and lowest-earning groups. The sentiment reading for those making $100,000 or more a year increased to 17.3, while it was minus 51.4 for those with incomes less than $50,000.

The Bloomberg Consumer Comfort Index, compiled by Langer Research Associates in New York, conducts telephone surveys with a random sample of 1,000 consumers ages 18 and older. Each week, 250 respondents are asked for their views on the U.S. economy, personal finances and buying climate. The margin of error for the headline figure is 3 percentage points.

The percentage of negative responses is subtracted from the share of positive views and divided by three. The most recent reading is based on the average of responses over the previous four weeks.

The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative.

1
Text Only | Photo Reprints
Community News Network
  • 20140727-AMX-GUNS271.jpg Beretta, other gun makers heading to friendlier states

    In moving south and taking 160 jobs with it, Beretta joins several other prominent gunmakers abandoning liberal states that passed tough gun laws after the Newtown shooting.

    August 1, 2014 1 Photo

  • Screen Shot 2014-07-28 at 2.21.22 PM.png VIDEO: Dog 'faints' from excitement of seeing owner

    A reunion between a Pennsylvania woman who had been living overseas for two years and her pet schnauzer has gone viral, garnering nearly 20 million views on YouTube.

    August 1, 2014 1 Photo

  • Why a see-through mouse is a big deal for scientists

    A group of Caltech researchers announced in Cell Thursday their success in making an entire organism transparent. Unfortunately, this isn't any kind of "Invisible Man" scenario: The organism in question is a mouse, and the mouse in question is quite dead.

    July 31, 2014

  • Screen Shot 2014-07-31 at 2.12.55 PM.png VIDEO: Five-year-old doesn't want her brother to grow up

    Sadie, an adorable 5-year-old from Phoenix, wants her brother to stay young forever, so much so that her emotional reaction to the thought of him getting older has drawn more than 10 million views on YouTube.

    July 31, 2014 1 Photo

  • lockport-police.jpg Police department turns to Facebook for guidance on use of 'negro'

    What seems to be a data entry mistake by a small town police department in western New York has turned into a social media firestorm centered around the word "negro" and whether it's acceptable to use in modern society.

    July 31, 2014 3 Photos

  • The virtues of lying

    Two computational scientists set out recently to simulate the effects of lying in a virtual human population. Their results, published in the Proceedings of the Royal Society B, show that lying is essential for the growth of a cohesive social network.

    July 31, 2014

  • Sunburn isn't the only sign of summer that can leave you itchy and blistered

    You've got a rash. You quickly rule out the usual suspects: You haven't been gardening or hiking or even picnicking, so it's probably not a plant irritant such as poison ivy or wild parsnip; likewise, it's probably not chiggers or ticks carrying Lyme disease; and you haven't been swimming in a pond, which can harbor the parasite that causes swimmer's itch.

    July 30, 2014

  • Survey results in legislation to battle sexual assault on campus

    Missouri U.S. Sen. Claire McCaskill joined a bipartisan group of senators Wednesday to announce legislation that aims to reduce the number of sexual assaults on college campuses.

    July 30, 2014

  • An alarming threat to airlines that no one's talking about

    It's been an abysmal year for the flying public. Planes have crashed in bad weather, disappeared over the Indian Ocean and tragically crossed paths with anti-aircraft missiles over Ukraine.

    July 30, 2014

  • Sharknado.jpg Sharknado 2 set to attack viewers tonight

    In the face of another "Sharknado" TV movie (the even-more-inane "Sharknado 2: The Second One," premiering Wednesday night on Syfy), there isn't much for a critic to say except to echo what the characters themselves so frequently scream when confronted by a great white shark spinning toward them in a funnel cloud:
    "LOOK OUT!!"

    July 30, 2014 1 Photo

Seasonal Content
AP Video
Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN
NDN Video
Famous Internet Cats Help Big Cause With Viral Video Recapping a Blockbuster MLB Trade Deadline Chapter Two: Composing for a film in retirement Is Justin Bieber Dating a Model? Guardians of the Galaxy (Trailer) 'Sharknado 2:' Hottest Memes Surfing The Net Raw: Obama Gets Hug From Special Olympian Snoop Dogg Narrating Animal Footage Is Perfect Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2" Pitch Invading Morons Cause Chaos - @TheBuzzeronFOX Orlando Bloom 'Takes a Swing' at Justin Bieber In Ibiza Sadie Doesn't Want Her Brother to Grow Up
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.