Consumer confidence index climbing while stock market plummets

Tuesday, consumer confidence and the stock market took different paths. The Consumer Confidence index exceeded expectations as it rose to new levels. On the other hand, the stock market dived below 10,000 Thursday afternoon as investors cowered in fear of the European debt crisis and escalating hostilities between North and South Korea.

Article Source: Consumer confidence index climbing while stock market plummets

The Consumer Confidence Index report

The Consumer Confidence Index report from the Conference Board, a research group based in New York, said its Consumer Confidence Index rose to 63.3, up from a revised 57.7 reading in April. Economists surveyed by Thomson Reuters had expected 59. The Associated Press reports that the Conference Board Consumer Confidence Index survey — based on a random survey of consumers from 5,000 households between May 1 and May 18 — includes many volatile days in the stock market just like the May 6 Flash Crash and European debt crisis, but it was completed before the Korean crisis and a 376-point dive that happened on May 20, the stock market's worst one-day drop in more than a year.

Stock market ignored consumer confidence very much

More people are eligible for no fax payday loans for the first time in more than five years. 5,000 US households are the sample used in the consumer confidence index. Tuesday's report was the third consecutive increase and the highest level since March 2008. MarketWatch reports that the percentage of people who thought there would be more jobs in six months outnumbered the percentage who thought there would be fewer jobs. Meanwhile, when the latest report on the Consumer Confidence Index was released, the Dow Jones Industrial average had fallen more than 12 percent from its recent high of 11,205, reached April 26.

Consumer Confidence Index and the data

The consumer confidence index has been rebounding slowly since a record low of 25.3 in February 2009. A reading of 90 or above indicates stability while above 100 indicates strong growth. Consumer confidence index data means a lot to economists because consumer spending accounts for about 70 percent of U.S. economic activity. CNNMoney.com reports that the expectation index, which will measure consumer outlook over the next months, rose to 85.3, the highest level since August 2007, when it came in at 89.2. Last month, employers added the most jobs since March 2006, and economists expect payrolls to increase by 500,000 jobs this month, which would be the most since September 1997.

The stock market consumer confidence difference

The consumer confidence index and the stock market are apparently don’t meet on the same level. According to MarketWatch, banks withholding credit and U.S. consumers not spending, it was the $ 800 billion government stimulus package that jump-started a return to growth in gross domestic production, jobs and more recently consumer confidence. After seeing stocks plunge more than 50 percent twice in the past ten years, investors on the stock market are looking for other ways to make easy money.

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Associated Press reports

http://www.google.com/hostednews/ap/article/ALeqM5jsIlLP-jUnVIwDKXJfeEyTrbBlmQD9FTUM100

MarketWatch reports

http://www.marketwatch.com/story/consumers-getting-more-hopeful-about-jobs-2010-05-25

CNNMoney.com reports

http://money.cnn.com/2010/05/25/news/economy/consumer_confidence/