Consumer confidence is one of the main aspects that shows how deep the prob-lem in the economy actually is, and giving even a darker picture to the near fu-ture of the economy, as we all know whenever consumers are less confident about their economy the less they tend to spend.
The University of Michigan consumer confidence index came out last week to un-cover even a worse than estimates reading, declining to almost 30 years low, and today it is expected that the conference board consumer confidence index will fall in the month of April to a 14 years low to 61, after 64.5 in March, as the economy crisis is just keep getting deeper and deeper, and the affect of higher food and energy prices is just adding to the misery of consumers.
With all what is going in the economy nowadays it is no wired that consumers will lose their faith in the economy, if you have a home that worth half what is worth two years ago, while the cost of living is increasing day by day, dear reader all of us would lose our faith in the economy, but the question is how much is it gonna affect consumer spending and therefore growth??!
The FOMC will announce tomorrow their decision on the federal funds rate, with expectations that they will lower another quarter point reaching to 2.00%, with some signals that this will be it for the feds, and for the markets, and those cuts will be enough to maintain stability in financial markets, and to stimulate eco-nomic growth.
This is all we got today dear reader, just a preparation for tomorrowâ€™s growth data and rate decision, so letâ€™s sit and watch, it might turn into a major market mover, yet most probably it will just lay the ground for investors and give them the proper time to be ready for what is bigger.