Friday, February 26, 2010

The Other Consumer Confidence Index

Smartmoney

Economists may see a recovery underway, but in a nation heavily dependent on consumer spending, the economic rebound won’t feel convincing until people start shopping again.

The Reuters/University of Michigan Consumer Sentiment Index for February slipped slightly, to 73.6 from 74.4 in January. On Thursday, weekly jobless claims jumped by 22,000, more than economists had expected, rattling the stock market. Earlier this week, the Conference Board reported its Consumer Confidence Index had dropped to 46.0 from 55.9 in January, with consumers’ assessment of current conditions at its lowest point in 27 years.

Many retailers have focused during this downturn on controlling inventory, cutting costs, and improving the efficiency of their operations, says Brian Sozzi, an analyst at Wall Street Strategies. Companies that, like Home Depot, Target, or Gap, have really made distribution or sourcing more efficient will be best positioned to benefit from rising sales trends, Sozzi says.

Link to full article: http://www.smartmoney.com/Investing/Economy/The-Other-Consumer-Confidence-Index/