CHANGE SIZE

Recession Bites—Stagnation Looms: Update

LJS Association Survey

Posted April 21, 2008

highlight

When Americans feel their finances are teetering out of balance, they curtail spending and scratch for income in an effort to restore their ability to meet their financial obligations.

Other Articles

Consumer finances worsen even more between March and April. The Consumer Affordability Index (CAI), which tracks whether consumer feels they can afford to maintain their current level of spending, moves down from 88 in March to 82 in April. This is the lowest reading since the October reading of 95 just before the onset of the recession. When the recession began in November, the CAI fell to 87.

Stagflation looms as the percent of consumers who fear prices will rise faster than their income moves up from 34% in February to 49% in March to 53% in April.

The percent of consumers reporting their income is less than what they need to live comfortably stands at 37% in April the highest reading since the start of the recession

The economy is now named spontaneously by 65% of consumers as a major problem facing the nation. A 51% majority of consumers believe the nation is in a recession that will continue beyond 2008.

8SAGES.com continues to track the economy and explore the effects of recession and inflation on various segments of the consumer population. Contact 8SAGES.com with questions or with requests for being alerted to new developments.

ALSO SEE PREVIOUS BACKGROUND ARTICLE

Recession Bite – Stagflation Looms March 27, 2008