CHANGE SIZE

Economic News Will Be Upbeat in November

Posted October 27, 2009

Other Articles

CONSUMER FINANCIAL BALANCE: The Consumer Balance Index (CBI), which tracks consumer perception of the balance between their assets and income versus debt and spending obligations, rebounds from its September recession low of 73 to reach 79 in October 2009.

Click here to see graph

With their financial balances improved, consumers are more willing to spend freely in October than in September.

	Consumer Balance Index
	Aug 2009	Sept 2009	Oct 2009	Diff. Aug-Sep	Diff. Sep-Oct
CONSUMER BALANCE INDEX (CBI)	78	73	79	-5	+6
Consumer willingness to spend freely for consumables INDEX	76	71	77	-5	+6
Percent Spending Freely On…
Clothing	66%	70%	65%	+4	-5
Food	59%	64%	59%	+5	-5
Gas	58%	54%	56%	-4	+2
Medical Expenses	73%	64%	69%	-9	+5
Major Good Active Shopping Index	100%	96%	99%	-4	+3
Percent Actively Shopping For…
New Car	7%	5%	3%	-2	-2
Used Car	9%	9%	9%	-	-2
House	6%	4%	5%	-2	+1
Furniture	9%	9%	10%	-	+!
Personal Computers	11%	9%	9%	-2	-
Major Appliances	7%	7%	8%	-	+1
New Carpeting	2%	4%	3%	+2	-1
Color TV	5%	6%	9%	+1	+3
Air Travel	19%	19%	21%	-	+2
Overnight Hotel/Motel	20%	19%	20%	-1	+1

COMMENT

The Consumer Balance Index measures consumer perception of the balance between their assets and income versus debt and spending. It reflects confidence in their personal rather than in the nation’s financial situation.

The good news about the October improvement in consumer willingness to spend anticipates good news about consumer spending showing up in November’s press, just as the bad news about the September decline in consumer willingness to spend showed up in October’s press reports.

TO ASK QUESTIONS request detailed data, make suggestions or offer your projections of the future, phone Leo J. Shapiro, CEO SAGE: Survival and Growth Enterprises LLC. He can be reached in Tucson at 520-878-0188.