It’s been a while since we posted an update of our interactive Consumer Confidence chart, and I thought in light of our series of big picture week posts last month it might be nice to see how people are feeling about the economy in general.
Since dropping below 25 in February 2009, the present situation index has spent 20 months below 30. Prior to this slump, the lowest the present situation index had ever been was 59.7 in September 2003, which was the last month of a 7-month trough.
Although the expectations index has risen to 65.4 from its February 2009 low of 27.3, the current level is still a far cry from the 1998-2007 average level of 95.7.
With consumers’ confidence about their current situation still treading water at historic lows, what is the rationale for people who believe a housing recovery is just around the corner?