Ipsos-Reid CASH Index: Consumer Attitudes Stagnate at Low Level

Ipsos Public Affairs ^ | 8/21/2002

[ArcLight]

The Ipsos-Reid CASH Index—an index of Consumer Attitudes and Spending by Household—stands at 85.1 in two surveys conducted in August, down 14.9 points from January 2002, when the index was set at 100.

Between May and July, the Ipsos-Reid CASH Index measured a dramatic tumble in consumer attitudes, particularly on expectations about the local economy and the individual’s ability to invest. Attitudes about current individual finances slipped from mildly positive to neutral over the first half of the year. So far, the CASH Index has not fully recovered.

[Tauzero]

ping

[GraniteStateConservative]

It's all just superficial. Stocks have dropped because of perceptions and confidence falls because of the stock market drop which causes the stock market to fall. There's no real reason for confidence to be so low. In January 2002 we were just leaving 2.7% GDP growth-- which isn't all that great. It's very possible that the 3rd quarter's GDP growth will be very close to that. Confidence should be about what it was in January.

[arete]

August is supposed to be a very strong month for auto sales. I guess that the consumer just can't pass up the latest SUV at 0% interest. If people are worried, it sure isn't showing in the driveway.

Richard W.