Consumer sentiment fell sharply in early February to levels associated with previous US recessions, dragged down by concerns a bleak economic outlook would raise the unemployment rate, a survey done by Reuters/University of Michigan showed on Friday.
The survey of consumers showed that consumers sentiment dropped to 69.6, the lowest reading since February 1992. The index was at 78.4 at the end of January.
Richard Curtin, the survey director stated that, "The sentiment index has only been this low during the recessions of the 1970's, early 1980's and the early 1990's.
Half of the consumers surveyed expect declines in real incomes and higher unemployment rates in the year ahead. Also, 86% of the consumers beleive that the economy is and has been in a decline which is the highest number since 1982.
Can you take your own survey of your customers and employees? How are they feeling? Have your sales dropped? Are your accounts receivables rising?
Please share your comments on your experiences with this failing economy with us!
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