Regarding consumer confidence: curb your enthusiasm

In September, the consumer sentiment index inched up as the negativity related to the political bickering and finger pointing in Washington D.C. over the debt ceiling crisis started to wear off a little, said analysts at IHS Global Insight.

By ·

The Reuters/University of Michigan consumer sentiment index fell again. Every major component of the consumer sentiment index fell. Consumer confidence is inching itself deeper into the recession zone. The summer was a brutal season for consumer confidence.

In September, the consumer sentiment index inched up as the negativity related to the political bickering and finger pointing in Washington D.C. over the debt ceiling crisis started to wear off a little, said analysts at IHS Global Insight.

“The debt issues in Europe, increasing volatility in the equity markets, poor job prospects, and higher consumer prices are starting to chip away at consumer confidence once again,” reported IHS today. 

This is not good news. However, since gasoline prices have fallen, households have some extra money to spend on other things. Consumer confidence is at recessionary levels; however, retail sales are still chugging along. Consumer spending would be significantly higher if consumer confidence were not so low, and if firms were hiring at a faster rate.

What is the logistics and supply chain community to make of all of this? Curb your enthusiasm, and soldier on.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Economy · Global · Global Logistics · All Topics
Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...