2008-10-22 In October, the confidence of American consumers suffered the most significant drop in history. According to the Reuters and University of Michigan’s report, the confidence index of American consumers has dropped from 70.3 in September to 57.5 in October that is lower to the 65.5 the analyst anticipated and recorded the lowest since this June. It is also the sharpest decline of this survey in history.
The report pointed out that Confidence of Consumer Index by University of Michigan has dropped more than 10 in a single month by only 4 times since it issued in 1952. The report shows that the Present Situation Index has recorded the lowest, from 75 in September to 58.9 in October. Consumers’ inflation rate expectancy for the following year has risen from 4.3% to 4.5%. Their inflation rate expectancy for the next 5 years has dropped from 3% to 2.8%.
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The American New House Start rate in September has reached the 17-year low. The U.S. Department of Commerce reports that the New House Start rate has dropped 6% in September and it is 817000 sets calculated after Seasonally adjustment in annual rate. It is significantly lower than analysts’ forecasts of 870,000 sets and it is the lowest since January 1991. Single-family houses’ start rate has dropped 12% sharply, that is 544000 sets, which is the lowest since February 1982.
Besides, the Housing Construction Permits, which can reflect the trend of housing, has reduced 8.3% to 786000 sets. It recorded the 27-year low.
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